Drug giant leans on Web pharmacies - GlaxoSmithKline threatens to cut off druggists who ship products to U.S.

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Manitoba's booming Internet pharmacy industry is under threat from one of the world's biggest drug companies.

GlaxoSmithKline has sent letters to the province's Web-based pharmacies, warning them that as of Jan. 21 it will no longer supply its products to those selling the drugs to customers outside Canada.

"In the interest of patient safety and the maintenance of an adequate product supply in this country, GSK is strongly against the Internet sale and export of its Canadian medications," Steven Popp, GSK's director of customer operations and distribution strategy, wrote in the Jan. 3 letter.

Mr. Popp's warning letter was part of a national mailout, but it could hit hardest in Manitoba.

The province has at least 30 pharmacies that handle Internet mail-order drug sales to the United States and elsewhere, recording annual sales estimated at $300 million.

It has been projected that another 500 pharmacy jobs can be created in Manitoba next year.

U.S. media reports have estimated Canadian pharmacies are filling prescriptions worth $1 billion a year into the U.S. market, where higher drug prices have many seniors desperate for cheaper medications from north of the border.

Manitoba Industry Minister MaryAnn Mihychuk said the province's Internet pharmacies appear to be getting squeezed in GSK's desire to protect its U.S. sales.

"What we are getting caught in is an international issue of intellectual property and drug pricing," she said.

"We are hoping we can find a settlement. We want to assure sales and prices are protected."

Ms. Mihychuk said she will look into whether GSK's attempt to shut down export sales might violate the Canada-U.S. trade agreement.

GSK, headquartered in Britain, had sales of $29.5 billion in 2001 and has more than 100,000 employees worldwide.

-- Anonymous, January 11, 2003


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