[beaver fever]

Just last week Merck threatened to cut off drug supplies to Canada unless pharmacies could prove that they weren't exporting drugs to the US over the Internet.

Merck sells the same drugs in Canada as it does in the US at a cheaper price. What does that tell you? It tells me that Merck has no problem selling drugs cheaper in Canada because of bulk buying. They just don't want Americans to know about it. Which they will find out soon enough if they go to dotcom pharmacies.

Oh and in the US health managment companies are not allowed to negotiate lower prices by buying in bulk.

You're being ripped off.

Again half of the drugs sold in Canada and the US are produced by European drug companies so America is not subsidising Canadian drugs and Canada is not getting a free ride on new drug development.

Only 30% of Canadian drugs are proprietary the rest are old non patented generics.

Think beyond the box. Google is your friend.

[mewzilla]

We're being ripped off? That's some racket you folks up North have got going here. We invent the drugs down here, and then rather than allowing the companies to spread the R&D and advertising costs around equally, Canada slaps an arbitrary lid on prices. So, in effect, the US consumers are subsidizing Canada's cheaper drugs.

Like I said, nice racket you all've got going there.

[enigma825]

You are being disingenuous. Although most of the "PARENT" drug development companies are European, most of the cost of these new drugs-research and regulatory satisfaction is accrued/accomplished in the US. The manufacturing of the new drugs may be done offshore, but that is the least cost intensive part of the new drug introduction cycle.

[SuziQ]

It tells me that Merck has no problem selling drugs cheaper in Canada because of bulk buying. They just don't want Americans to know about it. Which they will find out soon enough if they go to dotcom pharmacies.

I'd be curious to know what drug companies liabilities are in Canada. Do they have the same exposure there as they have here with respect to greedy tort lawyers looking to cash in on claims of people being 'damaged' by prescription drugs? I'd guess they don't because you can still buy cyclamates and saccharin in Canada, and those haven't been legal in the US for years.

I'm thinking that goes a LONG way toward explaining why they can sell the drugs so much cheaper in Canada. They don't have to worry about being sued, so they don't have to buy 'extortion insurance', which is what helps drive the cost of pharmaceuticals up in this country.