Should Drug Imports Be Legal

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Should Drug Imports Be Legal?

• By
• Ron Mauro

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Whats the big deal?

• The drugs from Canada are cheaper
• Canada is a trusted safe country
• Pharmaceutical companies are greedy
• Many seniors cant afford US prices

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Medicare Prescription Coverage

• Rolled out in 2006
• Funded by tax dollars and patient co-pays and
  deductibles
• Uses private insurance companies
• Projected to save patients an average of 33 on
  drug costs

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Alternatives

• 1) Imports Illegal- Imports are illegal to cross
  into the US. All drugs purchased and consumed in
  US must be FDA regulated.

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Alternatives

• 2) Imports Illegal and Medicare Prescription
  Coverage- Same as 1, but Medicare prescription
  coverage is added.

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Alternatives

• 3) Imports Legal- Purchase and consumption of
  drugs from anywhere in the world are legal, and
  FDA regulation is not mandatory.

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Alternatives

• 4) Imports Legal and Medicare Prescription
  Coverage- Same as 3, plus Medicare Prescription
  coverage is added.

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Strategic Criteria andMerit Priorities
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BOCR Control Criteria Priorities
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Consumer Safety Criteria

• Counterfeit Expired Drugs
• Regulation?
• Accessibility
• Too Accessible?
• Not accessible because too expensive

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Consumer Safety Facts

• The WHO estimates 8 of bulk drugs imported into
  the US are counterfeit
• Health Canada and FDA do not regulate US imports
• Many drugs from Canadian Internet Pharmacies are
  from Pakistan, Bulgaria and Singapore

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Drug RD Criteria

• Cash flow to fund RD for new medicines
• Industry RD
• Revenues Govt Grants
• University RD
• Govt Grants and Industry Donations

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Drug RD Facts

• 43/47 top selling drugs were developed solely by
  the Pharmaceutical industry
• RD as a of Sales
• Pharmaceuticals 18
• Electronics 8.7
• Automotive 5
• Aerospace Defense 3
• 10-12 years and 800 MM to market
• 3/10 drugs are profitable enough to cover RD

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Economic Criteria

• Drug and Healthcare Costs
• US Economy Impact
• Pharma Jobs (Supplier and Retailer)
• Manufacturing, Sales, RD, Supply Chain
• US Supplier and Retailer companies Revenues and
  Overall Health

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Economic Facts

• 223,000 US Pharmaceutical RD Jobs
• Pharmaceutical industry pays the most taxes as a
  percent of revenues
• US Companies produce 45 of all new medicines

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Results Benefits
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Results Opportunities
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Results Costs
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ResultsRisks
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Model Results
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Sensitivity Benefits / Opport.
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Sensitivity Cost / Risks
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Conclusions

• Imports should remain illegal and Medicare
  coverage will help with drug costs
• Drugs need to be regulated for safety, imports
  are not always safe, even from Canada
• The US drug industry would suffer if the import
  barriers were lowered
• New medicine innovation is at risk
• Other cost reduction methods should be pursued