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CANADA MOVES ON US PHARMA TRADE CURBS

October 10, 2005

Canadian health officials have launched a public consultation on restricting supplies of bulk drugs to the US, in the event that a possible liberalisation of cross-border trade creates shortages in Canada. Health Canada is to close the consultation by November 7, and will carry out face-to-face meetings with leading "stakeholders" on October 2425.

The consultation comes amid reports in recent months that the government could restrict exports of key drugs, in the wake of soaring US demand for Canada's price-controlled drugs. According to the notification, new legislation could also drastically tighten internet distribution of Canadian drugs, as well as better monitoring of drug sales in order to better balance US and Canadian demand.

A key element in the plans would be a new list of drugs temporarily banned from export. Such prohibitions would be maintained only for a specified period, subject to renewal, and controls would be lifted once the risk of shortages is judged to have declined. In order to identify potential shortfalls, new laws would empower health officials to force all players in the drug supply chain to report accurate inventory data.

Moves to tighten sales of prescription drugs to US citizens could appease US drug firms. The scale of cross-border trade could be reduced by new regulations insisting on an "established" relationship between prescribers and patients.

Much of the controversy over internet drug sales has centred on the co-signing of prescriptions by Canadian doctors in the absence of a personal consultation with the patient. Penalties against pharmacists who knowingly dispense drugs in such circumstances could also be introduced. However, the consultation will first have to decide just what type of prescriber-patient contact constitutes an "established" relationship.