SAVINGS ON US DRUG PURCHASING FROM CANADA SHRINKING

According to studies conducted by industry sources, savings from internet purchasing of drugs from Canada by US citizens appear to be shrinking. In 2004, the average discount declined to 29% from 38% relative to US selling prices in 2003, with the trend attributed to recently introduced restrictions on drug supplies to internet pharmacies and the weaker US dollar. Many re-importers are now obliged to order from physical pharmacy outlets in Canada, which charge a higher markup for the supplies.

Meanwhile, authorities on both sides of the border appear more inclined than ever to stamp out the trade. Reports suggest that a recent bilateral summit may have encouraged the Canadian government to eliminate the illicit exportation of drugs to the US, mainly by prohibiting Canadian doctors from writing prescriptions for U.S. patients they haven't physically seen. Furthermore, a recent report produced by the US administration found that a monitoring system for the importation of drugs could be created but would be difficult to devise, costly and result in only modest savings for US consumers.