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Commentary

Letter to the Editor: Europe’s Drug Import Example
Panos Kavanos, Washington Post, 10-30-04

Europe has had reimportation of drugs – called "parallel trade" over there – for some time. This letter, by the author of a London School of Economics study on the economics of European reimportation, sets out the results of that study. The author found that most of the gains from reimportation went to the middlemen, not the consumers. In light of the example cited above of the $13 generic drug and the $15 shipping fee, it's well worth recalling that prices in Canada now will not be the same later if reimportation is adopted. Arbitrage is profitable, whether you're Ivan Boesky on Wall Street or the owner of a Canadian Internet pharmacy in Saskatoon.


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