Financial Times - More than 30 Canadian internet pharmacies have decided not to accept bulk orders of prescription drugs from US states and municipalities.
The move delivers a potentially serious setback to US politicians most notably Democratic presidential candidate John Kerry campaigning to give Americans easier access to cheap drugs from Canada.
Mr Kerry has argued that opening the US to Canadian imports could help lower the costs of prescription drugs for elderly Americans. Such reimportation has become one of the points of difference between him and President George W. Bush during the election campaign.
But growing concern in Canada that growing exports to the US could lead to rising prices and shortages north of the border has prompted the Canadian International Pharmacy Association (Cipa), whose members include several of the biggest internet and mail-order drugstores, to act. "We don't want to give Americans the impression that we have unlimited supply for them to tap into on a commercial basis," said David Mackay, the association's executive director. Americans, he added, "can't get everything from Canada. We can't be your complete drugstore".
I would imagine that, should America open up to prescription drugs from international sources, there would be a certain amount of time where prices and supplies would be in flux. Drugs formerly plentiful in foreign countries would suddenly become more scarce as manufacturers adjusted to the new demand. Which would mean that prices would go up.
But eventually prices should hit an equilibrium with international drug prices being somewhat higher than they were before but still lower than what Americans were paying.
Personally I'm for allowing international drug companies marketing their pills here in America. Just so long as these foreign drugs meet the same, standard set of requirements domestic drug companies are required to meet there shouldn't be any problems and citizens should reap the price benefits of the additional competition.