iHealth Beat, March 25, 2004

U.S. demand for cheap online drugs and manufacturer supply freezes are forcing Canadian Web pharmacies to improve their standards and sort out drug supply issues, the Canadian Press reports.

David MacKay, executive director of the Canadian International Pharmacy Association, which represents Web pharmacies, said that more than a dozen U.S. states have contacted him about importing Canadian drugs, though he said members of the pharmacy association can't participate because these agreements would threaten the Canadian drug supply. However, several states have launched Web sites that link to Canadian pharmacies (MacAffee, Canadian Press, 3/24). Minnesota and Wisconsin this year both introduced Web sites that connect their residents to Canadian pharmacies (iHealthBeat, 3/18).

CIPA in the next few weeks plans to launch a Web site to help states locate Internet pharmacies that comply with the association's new accreditation standards, which distinguish legitimate pharmacies from "rogue" operations, the Press reports.

Web pharmacies also face supply problems from drug manufacturers, many of which have tried to end supplies to Canadian pharmacies that sell to U.S. citizens. Critics say the drug companies will continue to freeze supplies, leading to drug shortages and higher prices for Canadians (Canadian Press, 3/24). Meanwhile, Web pharmacies have developed a computerized search system to find and share drugs they need, according to a separate article in the Canadian Press (Canadian Press, 3/24)

However, some say the Internet pharmacy industry could collapse as Canadian pharmacies rush to meet the demands of U.S. customers. Sally Pipes, a Canadian and head of California's Pacific Research Institute, this week told the Conference for Online Pharmaceuticals in Canada that sales of Canadian drugs to U.S. citizens rose from $50 million to $800 million in three years, and the number of U.S. residents purchasing cheaper drugs online increased from 40,000 in 2000 to 1 million in 2003.

Pipes also said Canadians could suffer if dwindling supplies force them to import drugs from other countries, which are more likely to be mislabeled or counterfeit (Janzen, Winnipeg Free Press, 3/25).