Drug Giant to Cut Supplies to
Canadian Pharmacies
Tue April 22,
2003 05:30 PM ET
By Karen Pallarito
NEW YORK (Reuters Health) - Drugmaker
AstraZeneca, in a move seen as stifling
Canadian Internet sales of prescription
drugs to U.S. customers, intends to limit
supplies of its products to Canadian
pharmacies and wholesalers, a spokeswoman
confirmed on Tuesday.
AstraZeneca becomes the second major
pharmaceutical manufacturer, after
GlaxoSmithKline, to take steps to cut
supplies of its products to Canadian
companies serving Americans.
In an April 8th letter to Canadian drug
wholesalers and retailers, AstraZeneca said
it was instituting an "allotment program"
due to spikes in demand for several of its
leading products.
Rachel Bloom-Baglin, a senior spokeswoman
at AstraZeneca's U.S. headquarters in
Wilmington, Delaware, said the firm received
unusually large orders for the heartburn
medications Nexium and Losec, which is sold
as Prilosec in the U.S.
The heightened sales activity in recent
months has "threatened our ability to ensure
continued availability of those products to
Canadian patients," she said.
"We're not cutting anybody off,"
Bloom-Baglin insisted. "We want to take a
look based on historical purchasing patterns
at what a customer has bought in the past."
All orders placed with AstraZeneca Canada
will be reviewed and filled to the extent
that the company can do so "without causing
supply problems or backlogs elsewhere in the
country," the letter indicated.
Glaxo, the world's second-largest
drugmaker, said in January that it would
stop supplying its drugs to Canadian
Internet pharmacies that ship medicines to
patients in America, sparking a backlash
among some U.S. patient advocacy groups and
politicians.
AstraZeneca is taking "a much softer
approach, but the results could be the
same," said Andy Troszok, vice president of
standards at the Canadian International
Pharmacy Association, which represents
Internet pharmacies in Canada.
"We strongly feel that all of these moves
are directly targeted at the international
pharmacy business in Canada with the goal of
stopping international free trade into the
U.S.," he said.
Bloom-Baglin could not answer directly
when asked whether AstraZeneca is seeking to
squelch Canada's booming Internet pharmacy
business.
"It's not a yes-or-no answer. The bottom
line is we've got to manage the supply chain
in Canada," she said.
"By the same token," she continued, "we
are not going to condone activities that the
FDA (Food and Drug Administration) has
deemed illegal for the reimportation of
drugs back into the United States."
AstraZeneca has told Canadian
distributors that its allotment program will
trigger audits for orders of Nexium and
Losec, as well as the prostate cancer drug
Casodex and the breast cancer treatment
Arimidex, Troszok said.
Senior advocacy groups say AstraZeneca's
move, like Glaxo's, removes another lifeline
for older Americans for whom prescription
medications are too expensive.
"Clearly, Canadian drugs are not the
answer to this national emergency, but
hundreds of thousands of Americans are able
to afford medicines that doctors prescribe
thanks to Canadian sales," said Robert
Hayes, president of the Medicare Rights
Center, a national consumer-advocacy group
based in New York City.
Bloom-Baglin responded to critics by
highlighting the company's investment in
programs to help those who cannot afford
prescription medicines. AstraZeneca provided
the equivalent of $414 million in free or
discounted drugs to more than one million
patients in 2002 alone, she said. |