GSK claims victory in US parallel import row
pharmafile | October 27, 2003 | News story | |
GlaxoSmithKline has claimed victory in its controversial bid to block parallel imports of its drugs from Canada into the US.
The Anglo-American company has been blocking parallel imports from Canadian Internet pharmacies since January, but has now won the legal backing of Canada's Competition Bureau to continue the practice.
The company is not the only one to be affected by the growing practice, estimated to account for $500 million in prescription drugs sold to more than one million US citizens in 2002.
While the figure is less than 1% of the annual $154 billion US pharmaceutical sales, the industry is fearful parallel trade could undermine profits in its most lucrative market.
GlaxoSmithKline said: 'This decision validates GSK's position that the export of Canadian medicines to the US presents serious issues for Canada's healthcare system, puts a strain on supply of medicines for Canadians and poses a safety risk for US patients accessing regulated Canadian medicines."
These arguments have been dismissed by the Stop Glaxo Now coalition of US seniors' patient groups, who are campaigning against the company, including a boycott of its OTC products.
The Canadian authority decision was based largely on the US FDA ruling that parallel imports are illegal, although this is an interpretation many campaigners believe can and should be challenged in court.
Vermont Congressman Bernie Saunders lays claim to being the first politician to take constituents over the border to buy cheap prescription drugs in Canada. He says US Government backing for GSK actions is just the "latest payback' for hundreds of millions of dollars in political donations.
"The pharmaceutical industry is the most powerful lobby in the country and has spent hundreds of millions of dollars in campaign contributions, lobbying and advertising to protect their astronomical profits and force Americans to pay, by far, the highest prices in the world for prescription drugs."
He added: "At a time when millions of Americans are struggling to afford the outrageously high price of prescription drugs in the US, we cannot allow the FDA to slam the door on a source of safe and affordable medicine for an increasing number of Americans, namely Canada. This is a matter of life and death."
GSK gained the support of an unlikely ally when Elliot Hahn, Chairman and President of the generics manufacturer Andrx, gave evidence to a Congressional committee on the growing practice.
Mr Hahn echoed GSK concerns about safety, and said prescriptions from unauthorised pharmacies without access to patient records could endanger patient safety.
But all sides agree that the high cost to senior citizens who have to foot most of the bill for prescription medicines is what is encouraging the practice of parallel imports.
Mr Hahn said: "It is important to note that the dramatic rise in internet importation is not the underlying cause, but only a reaction to the real issue of access to affordable medication for those who lack or have limited prescription drug coverage."
GSK spokeswoman Nancy Pekarek told the San Francisco Chronicle: "We recognise concerns for cost but we do not believe looking to another country is the right way to address those concerns. We would urge these groups to turn their energies to Congress and urge their Congress members to pass a Medicare prescription drug benefit."
In Europe, the industry says the practice is now seriously undermining the competitiveness of the markets, with European Union parallel trade in drugs forecast to rise from about $3.3 billion in 2001 to around $7.4 billion by 2006.
