While the importation of drugs via Canadian Internet pharmacies remains an issue hotly debated in the US by federal and State governments, individual US residents continue to purchase prescription drugs from these pharmacies. Not surprisingly, therefore, pharmaceutical companies are taking steps to constrain this cross-border activity. As noted in an earlier E-TIPSâ„¢ article (Vol 2, No 19, March 3, 2004), in a Canadian Press story published on February 23, it was reported that Pfizer Canada Inc. had alerted wholesalers that it may cease to supply products that were to be re-sold to Internet pharmacies. Eli Lilly and Company (Lilly) appears to have recently taken similar measures. In an Associated Press article published on March 31, it was reported that the company sent a letter to Canadian Internet drug retailers outlining a new policy requiring these pharmacies to fax each of their purchase orders to distributors of Lilly's products, to Lilly's Canadian customer response center for review. Upon receiving clearance from Lilly, the pharmacies could then submit their purchase orders to the distributors. Lilly would review the quantities being ordered "to help ensure that the supply of [their] products is linked to Canadian patient demand" which, in turn, it said would ensure an adequate supply of product is available in Canada. In light of the various safety concerns cited by pharmaceutical companies regarding online pharmacies, it is also not surprising that here in Canada, a number of health care advocacy groups have called on the Canadian government to ban the pharmacies. As reported in a March 31 article by the Associated Press, six such groups recently requested the ban in a joint news release. In the news release, the chair of the Canadian Treatment Action Council, an advocacy and education group for people living with HIV/AIDS, argued that Internet pharmacies would lead to increased drug prices and supply shortages. The article also notes that while the Canadian government has said it is monitoring the industry, the Government has found no evidence of a drug shortage due to Internet pharmacies. However, in a recent counter-move on the US side of the border, the State of New Hampshire announced that it has launched a State-sponsored web site allowing consumers to connect directly to a Canadian Internet pharmacy. For a copy of the article regarding Eli Lilly's new policy, visit: http://cbsnews.cbs.com/stories/2004/03/31/health/main609617.shtml. For a copy of the article regarding the request made by several Canadian groups for a ban on online pharmacies, see: http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1080740165689_67/. For a news article on the New Hampshire move, see: http://makeashorterlink.com/?D2D312208. Summary by: Lenni Carreiro

E-TIPS® ISSUE

04 04 14

Disclaimer: This Newsletter is intended to provide readers with general information on legal developments in the areas of e-commerce, information technology and intellectual property. It is not intended to be a complete statement of the law, nor is it intended to provide legal advice. No person should act or rely upon the information contained in this newsletter without seeking legal advice.

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