Drug
company giants in America are intensifying their lobbying efforts
aimed at eliminating subsidized prescription drug prices in
Canada.
Reportedly, $1 million is being added to the already heavily
funded drug lobby against the Canadian health care system.
Canada’s Internet pharmacy industry, which Americans
have been using to buy prescription drugs at significantly
lower prices than are available in the United States, is also
being targeted by the Pharmaceutical Research and Manufacturers
of America (PhRMA).
PhRMA, which claims the online pharmacies put patients at
risk, added another $450,000 to their budget specifically
to attack the legitimacy of such pharmacies.
According to PhRMA, Canadian price controls "take away
innovation." They state that eliminating subsidies would
increase the amount of drug development done in Canada and
give Canadians access to more drugs.
Canadian critics, on the other hand, say that taking away
price controls would allow drug prices to rise uncontrollably,
leaving many Canadians unable to afford prescription drugs--a
scenario that is common in the United States.
Others say that PhRMA is attacking the Canadian drug industry
simply because their lower prices make drug companies in America
look bad.
Prescription drugs are a huge business. Each year, more than
$12 billion is spent on prescription drugs in Canada and 65
percent to 70 percent of this amount is spend on brand name
products. In the United States, the amount spent on drugs
is 10 times that amount.
Additionally, the industry is battling over patent regulations
with generic drug makers. The prescription industry says that
companies must be protected and allowed to regain the money
it cost to develop and improve the effectiveness of drugs.
Edmonton
Journal June 9, 2003