Drug Giant Pfizer blocks UK trade with Canada
Pfizer, The world's biggest pharmaceutical company is taking another step in its battle against free trade. It intends to introduce a new supply policy to stop the export of its products to the US from Canadian online pharmacies [story].
In a letter dated Aug. 17 it states "Pfizer will, at its absolute discretion, make allocations of its products to customers in sufficient quantities so that demand from patients and health care professionals in the U.K. can be satisfied," sales director Philip Watts writes in the letter. Americans spent $700m on drugs from Canada where prices are cheaper. This is expected to reach $1bn this year. Freely traded drugs can be up to 70% cheaper. Pfizer's efforts to prevent online selling to the US means Canadian pharmacies have been forced to source drugs in Britain and New Zealand.
David MacKay, executive director of the Canadian International Pharmacy Association, which represents the mail-order industry, doubts that Pfizer's allocation strategy will have great success, because the overseas price advantage stems from a practice in Europe known as parallel trade. Guaranteed by the EU treaty, this allows wholesalers and importers to search member countries of the European Union for the lowest possible priced drugs, effectively creating free trade in pharmaceuticals. "If Pfizer locks down some wholesale product in Britain, parallel traders can access product from other wholesalers in other countries," he said. "Pfizer would have to shut down all wholesalers in 20 countries to be effective."
In a letter dated Aug. 17 it states "Pfizer will, at its absolute discretion, make allocations of its products to customers in sufficient quantities so that demand from patients and health care professionals in the U.K. can be satisfied," sales director Philip Watts writes in the letter. Americans spent $700m on drugs from Canada where prices are cheaper. This is expected to reach $1bn this year. Freely traded drugs can be up to 70% cheaper. Pfizer's efforts to prevent online selling to the US means Canadian pharmacies have been forced to source drugs in Britain and New Zealand.
David MacKay, executive director of the Canadian International Pharmacy Association, which represents the mail-order industry, doubts that Pfizer's allocation strategy will have great success, because the overseas price advantage stems from a practice in Europe known as parallel trade. Guaranteed by the EU treaty, this allows wholesalers and importers to search member countries of the European Union for the lowest possible priced drugs, effectively creating free trade in pharmaceuticals. "If Pfizer locks down some wholesale product in Britain, parallel traders can access product from other wholesalers in other countries," he said. "Pfizer would have to shut down all wholesalers in 20 countries to be effective."
Pharmopoly campaign commented
"Pfizer is aggressively trying to lay siege to the Canadian economy in order to hold up its monopoly profits at the expense of patients and taxpayers. Pfizer made $45 billion in sales last year, the Canada-US trade in Pfizer products was not even 1% of turnover, yet Pfizer wants to throttle the supply of products to US patients who find it difficult to afford high US prices and are forced to go to the effort of importing from Canada. It may not be legal, and its definitely not right."
