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Wednesday, January 29, 2003

Drug wholesaler to stop supplying Glaxo products to Net pharmacies

Manitoba's largest pharmacy wholesaler will no longer supply GlaxoSmithKline products to Internet pharmacies who sell to consumers outside of Canada, in compliance with an order from the drug maker. Glaxo announced Friday that it would stop doing business with wholesalers that sell to any of 29 "blacklisted" Internet pharmacies, the Winnipeg Free Press reports.

Glaxo will require the 29 pharmacies to purchase their drug supplies directly from the company, making it easier for Glaxo to monitor the pharmacies' activities, according to the Free Press (Kuxhaus, 1/29). Earlier this month, Glaxo had threatened to cut off the supply of its drugs to any Canadian pharmacy selling to consumers outside of Canada. The drugs that the pharmacies are selling abroad are only approved for sale in Canada, and the shipping process could affect their quality, company officials said (Samyn, Winnipeg Free Press, 1/10).

But pharmacy officials maintain that Glaxo's campaign is motivated by a desire to protect its stake in the lucrative U.S. prescription drug market. Prices for the same drug can be as much as 29% lower in Canada than in the United States, the Free Press reports.

The Manitoba International Pharmacist Association will decide by next week whether it will take legal action against Glaxo, group representatives said yesterday. The group's lawyer said the drug maker's policy could violate competition laws and free trade agreements; Glaxo attorneys deny those claims (1/29).

Glaxo products account for about 10% of Internet pharmacy sales in Manitoba, according to the Canadian Press (Kuxhaus, 1/28).



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