Drug
Administration to shut down Rx Depot and Rx of Canada,
saying the companies were violating a federal law that allows only
manufacturers to bring drugs into the country.
Rx Depot says it plans to appeal, but will comply with Judge
Eagan’s order unless another court blocks the decision.
It
is estimated that between 1 million and 2 million Americans currently buy
Canadian drugs through the Internet, through storefront operations like Rx
Depot, or by crossing the border. Savings
vary depending on the drug, with some drugs costing over 50% less in Canada.
In
her decision, Judge Eagan wrote that, ``This court is not unsympathetic to
the predicament faced by individuals who cannot afford their prescription
drugs at
U.S.
prices.
However, the defendants are able to offer lower prices only because
they facilitate illegal activity determined by Congress to harm the public
interest.'' The judge suggested that the high price of prescription drugs
should be addressed by Congress. (Congress is currently working on a
Medicare “reform” package that could include provisions permitting
importation of drugs from Canada
).
In
another action intended to deter the importation of less expensive drugs
from Canada, the FDA has informed CanaRx Services, which supplies drugs to
the city of Springfield, Massachusetts, that its operations are illegal.
Springfield
hoped to save $9 million by getting
drugs for its employees from
Canada.
Officials of many other state and local governments, including
Illinois, Iowa, Michigan,
Wisconsin
and New York City, have all expressed interest in
using Canadian pharmacies to lower drug costs for state employees and
Medicaid patients.
Currently,
the FDA does not appear interested in taking any actions to punish
individuals who are purchasing drugs from Canada.
The FDA does warn individuals that imported prescription drugs may
be unsafe. It contends that seniors should not trust the safety of drugs
ordered from Canada.
However, given the substantial savings they can get, it is
anticipated that many seniors will continue to purchase drugs from Canada.
As the FDA recognizes, it would be very difficult to prevent people
from ordering drugs over the Internet, by phone, fax, or regular mail.
-Return
to Prescription Drugs Page-
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Marshall & Associates www.paelderlaw.com
