February 19, 2004
Pfizer has joined GlaxoSmithKline in cutting off shipments to selected Canadian pharmacies, as major drug companies try to shut off the flow of discount drugs from Canada to the U.S.
The drug embargo is likely to cause serious problems for Americans and Canadians alike and could cause serious shortages of some life-saving drugs in Canada.
"The export of pharmaceuticals from Canada represents a violation of our long-standing business terms," said Pfizer spokesman Andy McCormick. "We want to ensure that in Canada, medicines developed by Pfizer are in sufficient supply for Canadians."
In a letter to Winnipeg's Universal Drug Store and several others, Pfizer informed them that "effective immediately, your pharmacy is no longer approved to purchase Pfizer products from Pfizer Canada's authorized distributors." The pharmacies said they had been stockpiling Pfizer drugs and were hopeful of finding other distributors who would sell to them.
"The U.S. pharmaceutical industry is threatening the Canadian people. If you allow this to continue, it will create shortages in Canada," said Andy Troszok, vice president of the Canadian International Pharmacy Association and an executive at Crossborderpharmacy.com.
The Medicare prescription drug package enacted last year does not begin to provide meaningful benefits until 2006 and many U.S. seniors say they can't wait that long, especially when they can easily save 30 to 75 percent by buying drugs from Canada.
The Food and Drug Administration maintains that drug importation is illegal, but it has not prosecuted individual customers and has taken only sporadic action against larger importers.
The drug companies' hard line is likely to have consequences. A bipartisan group of senators, including Edward M. Kennedy (D-Mass.), Charles Grassley (R-Iowa) and John McCain (R-Ariz.) is considering legislation that would legalize drug importation. A similar bill easily passed the House last year.
State governments are also incensed. Many states and cities have purchased Canadian drugs for use by their employee and retirement health programs. Minnesota has filed an antitrust suit against GlaxoSmithKline and the governors of Minnesota, illinois and Iowa will convene a "summit" in Washington next week to plot their next move.
"Drug companies are far more concerned with protecting their U.S. profits than making sure consumers have access to the life-saving drugs they need," Illinois Gov. Rod Blagojevich (D) said.
AARP supports legalizing imports from Canada, said Mike Naylor, director of advocacy.
