Canada is set to announce measures that will restrict Internet pharmacies from selling mail-order prescription drugs to US consumers, Canada's Health Minister said on Thursday.
The long-anticipated move could kill a US$700 million industry that has become increasingly popular with underinsured patients in search of cheaper medicine.
The issue has become politically sensitive for US President George W. Bush.
His administration has argued that reimporting US-made drugs from Canada would put consumers at risk because US regulators would not be able to guarantee their safety.
The pharmaceutical industry, which donated heavily to Bush's re-election campaign, vehemently opposes reimporting drugs, a practice that undercuts their US sales.
As part of its socialized medical system, the Canadian government sets drug prices that are lower than those charged in the US.
Under current practice, a prescription from a US doctor is faxed to a Canadian doctor, who reviews the document along with the patient's health history.
The Canadian doctor will then sign and fax the prescription to a so-called Internet pharmacy, which proceeds to ship the drug to the patient.
Canadian officials say such sales endanger the Canadian drug supply, though they admit no shortages exist.
The government also maintains it is unethical for doctors to sign prescriptions without examining patients.
Various bills have been introduced into Congress to permit the import of lower-cost prescription drugs from Canada and other countries.
Canadian Health Minister Ujjal Dosanjh has been studying options to restrict the practice for at least six months.
"I am concerned and we're acting on it. There will be news soon," Dosanjh said Thursday.
Asked when he would make the announcement, Dosanjh said: "very soon."
The measures being considered by Dosanjh include limiting the practice of Canadian doctors from co-signing prescriptions for US patients without examining them in person, Dosanjh spokesman Ken Polk said.
Other measures considered include prohibiting prescriptions for foreigners who are not in Canada, not allowing for a price reduction if the drugs are exported and the banning of bulk exports, Polk said.
A proposal to Canadian Prime Minister Paul Martin's Cabinet will likely be made next week.
Any new legislation, but not changes to existing regulations, would require support from the opposition parties as well as Martin's minority government to pass.
It was not clear if a ban on co-signing prescriptions could be accomplished by just changing regulations.
While reimporting drugs is technically illegal, those laws are not enforced.
Ten million illegal shipments of prescription drugs worth US$1.4 billion entered the US in 2003, with about half of them coming from Canada.
About 1.5 to 2 million prescriptions are filled in Canada each year using this method.
The issue is particularly sensitive for lawmakers representing northern US states, where consumers sometimes travel to Canada to purchase cheaper drugs.
Republican Governor Tim Pawlenty of Minnesota has set up a Web site to help Minnesotans buy cheaper drugs from Canadian pharmacies, similar to I-SaveRx.com, a site helping people do the same in four other states.
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