New figures show Medicare Part D cut US Rx imports from Canada

New data published by IMS Health reveals that the importation of prescription drugs from Canada to the USA has fallen 50% from C$420.0 million ($449.5 million) in 2005 to C$211.0 million in 2006, largely as a consequence of the introduction of the Medicare Part D prescription drug benefit for seniors (Marketletters passim). However, other factors such as the weaker US dollar versus the Canadian dollar (ironically partly due to imports), rising prices and threats of supply disruption in the Canadian market have contributed to the fall in parallel trade.

Ilisa Bernstein, the US Food and Drug Administration's Director of Pharmacy Affairs, told the Philadelphia Inquirer that the federal agency does not have evidence to support the IMS analysis. However, there is growing concern that "many people are buying drugs on-line not to save money but to bypass the need for a prescription from their doctor," according to Randall Lutter, the FDA's deputy Commissioner for policy (Marketletter November 12).

In a case reported earlier this year, a Canadian woman died as a result of adverse effects caused by counterfeit drugs bought on-line, despite the fact that at least one product was available to her for a lower co-payment under Canada's health care insurance system (Marketletter July 23).