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US Warns 3 Firms Over Drug
Imports From Canada

By Lisa Richwine
1-23-4



WASHINGTON (Reuters) - U.S. regulators on Thursday warned three Texas-based companies that they were illegally helping employees and retirees of Montgomery, Alabama, import medicines from Canada.
 
The action is the latest in a Food and Drug Administration (FDA) effort to try to stop Americans from buying cheaper medicines from other countries. The FDA and drug manufacturers say the practice is risky, but many critics are skeptical of the safety concerns.
 
The FDA said it sent warning letters to Expedite-RX, a pharmacy benefits manager; SPC Global Technologies Ltd., an insurance claims processor, and Employer Health Options Inc., an insurance company. All are based in Temple, Texas.
 
The letters informed the firms the FDA "considers their drug import program to be illegal and a risk to public health," an agency statement said.
 
The FDA asked the companies to reply within 15 working days explaining what steps they will take to comply with U.S. law, which forbids anyone other than drug manufacturers from importing medicines into the country.
 
Tom Curb, a spokesman for the three companies, said the FDA's letter included "inaccurate allegations," and he was preparing a response. He said the companies were not running a drug import program and that the FDA had misunderstood their relationship.
 
"I don't think what we are doing is illegal," Curb said.
 
Expedite-RX provides prescription data to SPC's processing database, allowing for checks for possible interactions between U.S. and Canadian-dispensed prescriptions, he said. The company also refers patients to a licensed Canadian or local pharmacy, whichever is cheaper.
 
Between 200 and 300 Montgomery workers and retirees have participated in the city's Canadian drug plan with Expedite-RX, said Jeff Downes, executive assistant to the city's mayor.
 
Amid growing interest in drug imports, the FDA and drug makers have warned that medicines shipped to the United States from abroad could be counterfeit, contaminated or too weak. Critics charge that drug makers only want to protect their profits.
 
Twenty-five U.S. states and 15 localities are looking into importing medicines from Canada, according to officials with the Pharmaceutical Research and Manufacturers of America, a drug industry lobbying group known as PhRMA.
 
Drug makers are advocating alternatives for saving on prescription costs, including company offers of free or discounted medicines for the poor and new Medicare discount cards.
 
Importing "is a false solution. There are many better options for patients," said Rick Smith, senior vice president for communications and policy for PhRMA.
 
 
Copyright © 2004 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

 

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