Bills Sanction Drug Imports From Canada

SACRAMENTO —  Defying pharmaceutical companies and the Bush administration, California lawmakers approved a series of bills this week encouraging drug importations from Canada.

The legislation passed by wide margins in the Assembly and Senate and is likely to make it to Gov. Arnold Schwarzenegger’s desk, putting the Republican governor in the middle of a populist issue being watched by consumers and corporate interests.

Federal drug regulators have warned about the dangers of imported drugs and the state’s lack of legal authority to regulate the industry. Drug companies point to individual cases to prove their point, such as fake birth control pills reportedly made in Bangladesh and passed to Canada.

But Democratic sponsors said a lack of action by federal authorities prompted this year’s blitz of legislation to provide consumer information on Canadian drugs and allow bulk purchases by the state. Drugs in the U.S. cost 40% to 70% more than in Canada, they said, sometimes forcing the elderly to cut pills in half or scrimp on groceries to afford their medication.

Schwarzenegger has strong ties to state business groups and has received about $560,000 in campaign contributions from drug company and biotech executives who are lobbying to kill this year’s legislation. They are expected to turn their attention even more forcefully to the governor now that the Legislature is poised to approve the bills.

The blitz of California legislation culminated Wednesday with the Assembly’s approval of five measures on prescription drugs. That followed eight bills targeting the pharmaceutical industry passed by the Senate, amid a wide-scale public relations campaign by drug companies.

Ashley Snee, a Schwarzenegger spokeswoman, said the governor does not comment on pending legislation but is concerned both about the high cost of prescription drugs and whether the state would be in violation of federal law by purchasing Canadian drugs.

“He understands that the rising costs are a problem for consumers,” Snee said. “So the aim would be real saving for individuals, taxpayers and consumers in general.”

If approved by the governor, California would set up Internet links to pharmacies selling prescription drugs approved by Canadian health authorities. The state also would warn people against out-of-country pharmacies with records of selling counterfeit drugs or ripping off consumers.

Other measures would allow California pharmacies to purchase Canadian drugs for Medi-Cal patients and for the state’s AIDS drug assistance program, both of which help low-income residents. The state spends about $1.5 billion a year on drugs for Medi-Cal patients.

Sen. Don Perata (D-Oakland), author of one of the bills, said he hoped the governor would go along. “This is one of the few things that jump out where California can use its purchasing power to leverage the markets,” Perata said. “That’s deal-making, that’s horse-trading, and he should be a great advocate for that.”

Another bill would require the state to include Canadian drugs when purchasing for prisons, state hospitals, the Youth Authority and the mental health system. Even though the state already can buy domestic drugs in bulk, the costs to buy pharmaceuticals for prisoners and others in state care have increased from about $40 million in 1996 to $176 million last year.

Lawmakers said the state could save $23 million a year by purchasing through Canadian pharmacies just five often-used drugs -- Seroquel, Zyprexa, Risperdal, Depakote and Neurontin -- all widely used in prisons and other state institutions to treat mental health problems.

An estimated 1 million Americans already purchase drugs through Canadian pharmacies, at a cost of $1 billion a year. In response, the drug industry has started cutting off supply to some large Canadian distributors.

So far, the Federal Drug Administration has not sued any of the states that have enacted similar measures like the ones passed in California, though the agency considers them illegal.

“We have held out the prospect of a lawsuit, although we haven’t explicitly threatened it,” said William Hubbard, the FDA’s associate commissioner for policy. “It may come down at some point to have to ask a judge to rule on this one way or another because you could have a conflict with state law and federal law.”

Some Republican opponents said drug purchases from Canada are illegal in the U.S. no matter what the Legislature decides -- because the FDA has no control over north-of-the-border pharmacies.

“In the creation of this website, it would seem to me on a very basic level that we have created a state-sanctioned means for people to violate existing federal law,” said Assemblyman John Benoit (R-Palm Desert).

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U.S. vs. Canadian drug prices

Prices for selected prescription drugs are in U.S. dollars for a 30-dose supply unless otherwise noted.

*--* Granville Pharmacy Drug, dosage drugstore.com Costco.com (Vancouver, (what it treats) (U.S.) (U.S.) B.C., Canada) Celexa, 20 mg. (depression) $68.99 $71.19 $46.52 Nexium, 20 mg. (heartburn) 120.99 122.37 66.68* Prilosec, 20 mg. (ulcers) 115.99 118.87 69.34 Vioxx, 25 mg. (pain) 77.99 80.87 46.52 Zocor, 10 mg. (cholesterol) 69.99 72.09 61.57 Zyrtec, 10 mg. (allergies) 58.99 57.99 28.02

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* For 28 capsules

Sources: Washington Post, drugstore.com, Costco.com, Granville Pharmacy