Canadian online pharmacies face problems

Apr 06, 2006

The Canadian online pharmacy industry, on which many U.S. customers depend, may have run into problems caused by its own growth.

The industry, which grew phenomenally as a cheaper alternative to soaring drug prices in the United States, faces falling sales caused by many smaller online pharmacies going out of business.

One estimate is that monthly drug sales from Canada to the United States have declined 20 percent to 30 percent since last June, reports The New York Times.

The report notes with the growth of the industry, surviving Canadian pharmacies are forced to either buy or become partners with pharmacies in Europe and Asia to find scare drugs and improve profit margins.

Other challenges include a strengthening Canadian dollar that makes their drugs more expensive, and advertising costs to answer questions about product safety.

The industry also has been hit by the recent large seizures of shipments by U.S. officials, the Times reported.

These steps have scared off some of the industry's 2 million U.S. customers. These same customers also are beginning to see the U.S. Medicare prescription drug plan may not be as cumbersome as previously thought.

Copyright 2006 by United Press International

Explore further: Microsoft's Nadella gets $84M pay package

add to favorites email to friend print save as pdf

Related Stories

Google to settle drug probe for $500 million

Aug 24, 2011

Google will pay $500 million to settle charges that it sold advertisements to Canada-based online pharmacies which marketed drugs to Americans in violation of US law, US justice officials announced Wednesday.

Report: Google ad inquiry focused on pharmacies

May 13, 2011

(AP) -- Google Inc. recently set aside $500 million to cover a possible settlement of a U.S. government investigation into the Internet search leader's distribution of online ads from illegal pharmacies, according to a report ...

Myth busted: Some drugs do cost more in Canada

Sep 29, 2008

(PhysOrg.com) -- Canada may be recognized as a bargain hunters' paradise for prescription drugs, but a new U of T study suggests that many generic medications may be more expensive in Canada than in the U.S. The uninsured ...

Recommended for you

Samsung seeks boost from redesigned Note

3 minutes ago

The latest version of Samsung's popular big-screen Galaxy Note has gone on sale at a crucial time for the South Korean company as it suffers a rapid decline in profit from its global smartphone business.

Facebook sues law firms, claims fraud

10 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

User comments : 0