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FDA Report Says U.S.
Generic Drugs Often Cheaper than Canadian Drugs
Boston becomes largest city now buying
drugs from Canada
July 23, 2004 - The
Federal Drug Administration, which has pretty much stayed clear of the
battle by the Bush Administration to prohibit the importation of
prescription drugs, has published a report in the latest edition of FDA Consumer Magazine
(July-August) saying generic drugs purchased in the U.S. are often
cheaper than Canadian brand-name or generic drugs.
The high cost of drugs in America has been causing
many to look to Canada for drugs, where they are often 50 percent less
than in the U.S. On Wednesday, Boston became the largest U.S. city to
offer prescription drugs from Canada, which the city says will save
about $1 million in its first year, according to a story by the
Boston Globe.
The full text of the FDA article follows.
Study: U.S. Generic Drugs Cost Less Than Canadian
Drugs
By Linda Bren
FDA Consumer magazine
July-August 2004 Issue
If you think all drugs
from Canada are cheaper than U.S. drugs, think again. In
the United States, generic drugs--roughly half of all prescriptions--are
often cheaper than both Canadian brand-name drugs and Canadian generic
drugs, according to a study by the Food and Drug Administration.
FDA analysts looked at the seven biggest-selling
generic prescription drugs for chronic conditions that became available
as generics in the United States since 1993:
alprazolam (generic
for Xanax) for anxiety and panic disorders
clonazepam (generic
for Klonopin) for seizure and panic disorders
enalapril (generic
for Vasotec) for high blood pressure
fluoxetine (generic
for Prozac) for depression, obsessive-compulsive disorder, panic
disorder, and bulimia nervosa
lisinopril (generic
for Zestril and Prinivil) for high blood pressure and heart failure
metformin (generic
for Glucophage) for type 2 diabetes
metoprolol (generic
for Lopressor) for high blood pressure, angina, and heart failure.
For six of the seven drugs, the U.S. generics were
priced lower than the brand-name versions in Canada . Five of the seven
U.S. generic drugs were also cheaper than the Canadian generics. Of the
remaining two U.S. generic drugs, one (enalapril) was unavailable in
Canada generically, and its Canadian brand-name version was more than
five times the price of the U.S. generic equivalent. The other U.S.
generic (metformin) sold for less in Canada both as a generic and as a
brand name. Metformin did not become available generically in the United
States until January 2002, so U.S. generic prices have likely not fallen
to the level they will eventually reach, say the FDA Office of Planning
economists who did the study.
The FDA study compared the average price of the
generic and brand-name versions of seven drugs sold in the United States
and Canada by calculating the price per milligram of active ingredients
in U.S. dollars. Prices in Canada were converted to prices in U.S.
dollars using a 2002 exchange rate. The prices were the costs to
retailers, and should predict retail prices to the extent that retail
markups are the same in both countries. Pricing information was
collected by the pharmaceutical market research company IMS Health of
Plymouth Meeting, Pa.
Advocates of legalizing imports of drugs from
Canada and other countries have typically cited studies showing that
brand-name drugs are much cheaper abroad than in the United States .
These studies ignore how competition in the U.S. market lowers generic
drug prices so they are lower than drug prices abroad, say FDA
economists. U.S. generics have the same quality, safety, and strength as
brand-name drugs, and they undergo the same rigorous review by the FDA
before they are allowed on the market.
Drug standards and regulations differ from one
country to another, and the FDA is responsible only for drugs that are
sold within the United States . The agency is concerned about the
strength, quality, and purity of medications that have not been approved
for sale in the United States because they may not have been
manufactured under quality assurance procedures designed to make a safe
and effective product.
"The standards for drug review and approval in the
U.S. are the best in the world," says William Hubbard, FDA associate
commissioner for policy and planning, "and the safety of our drug supply
mirrors these high standards." But when U.S. consumers seek out Canadian
suppliers, sources that purport to be Canadian, or other foreign sources
that they believe to be reliable, they are taking a risk, he says.
"While some foreign drug manufacturers submit their products to FDA for
approval, the imported drugs arriving through the mail, through private
express couriers, or by passengers arriving at ports of entry are often
unapproved drugs that may not be subject to any reliable regulatory
oversight. FDA cannot assure the safety of drugs purchased from such
sources." |
