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The savings for
one year when you buy
discount drugs online from
Canada can be in excess of $1,000! Canadian pharmacies with
Web sites can sell the same pills to Americans at up to 90 percent
less.
Cheap Canadian Drugs Are Here
Feds, state scrutinize local stores
with imported medications
By Randi F. Marshall
STAFF WRITER
June 15, 2003
As congressional leaders, the Bush administration and patients
advocates nationwide look for a way to make prescription drugs
cheaper, Russell Machover is offering New Yorkers an
alternative:
Buy Canadian.
Last week, Machover opened Rx Depot in Westbury - the state's
first outlet in a nationwide chain of storefronts that help
customers - particularly senior citizens - purchase cheaper
prescription drugs from pharmacies in Canada. Government price
controls there make drugs significantly cheaper than in the
United States.
"We're fulfilling a niche by servicing the people who need it,"
Machover said.
The phenomenon began with the Internet and drug-buying bus trips
to Canada. In the last year, it has spread to phone and
storefront operations.
Although Machover's opening was a quiet one, it is also
controversial, as federal regulators and prosecutors are
scrutinizing Rx Depot's 55 stores and threatening to shut down
the operation.
These critics say the practice of importing or reimporting drugs
- many of which were manufactured in the United States - is
illegal. Once these drugs are outside the country, the Food and
Drug Administration no longer has oversight and argues that
importing and selling such unregulated drugs is illegal here.
Federal regulators and pharmaceutical industry officials also
argue that reimported drugs may be unsafe because of the lack of
FDA control.
"It's like playing Russian roulette with the lives of
vulnerable, elderly patients," said Jeff Trewhitt, spokesman for
the Pharmaceutical Research and Manufacturers of America, a
trade association.
But Machover, a Jericho resident, counters that the drugs are
safe and his operation does not break any laws. Emphasizing the
importance of cheaper drugs for the elderly, he says, "It's like
a lifesaver for them."
One recent customer at Machover's store was North Babylon
resident Guy Musella, who bought several medications for himself
and his wife, Terese. Instead of meeting with a pharmacist or
perusing shelves of small brown bottles, Musella sat down at one
of the two desks in Machover's modest office, which also has two
computers and a few chairs.
Musella completed paperwork, handed over prescriptions and paid
by credit card for a 90-day supply of two medications, plus $15
for shipping.
He expects to receive his drugs by mail within two weeks.
"You save a dollar - that's one more aspirin you can take," said
Musella, a real estate agent. "It's very hard living on Long
Island. You have a choice, you either eat or you take your
medicine."
So far, Musella said he hasn't had to make that choice, but he
does limit his purchases because of costly drugs. Machover says
he will save Musella more than $300 for a three-month supply of
two medications.
"It's about social change and exposing the public to access to
medications that they've never had in the past," said Rx Depot
president Carl Moore of Oklahoma. "We're going to have a
tremendous amount of seniors who need medications at these
prices."
Two pharmacies in the Canadian provinces of Manitoba and Alberta
are selling the drugs to American patients through Rx Depot,
paying the company a 10 percent commission on each sale. One
percent of that goes to Rx Depot's legal expenses, while the
rest goes to individual store owners.
FDA Associate Commissioner William Hubbard said the cheaper
drugs come at a higher price, where safety and quality control
is compromised. "They're legally vulnerable to both civil and
criminal actions as a violation of federal law," Hubbard said.
Rx Depot isn't the only local business to bring Canadian prices
here. In March, Jon Robinson and Michael Weissman opened Forest
Hills-based Discount Rx Mart of Canada.
"I think we're only providing a wonderful, needed service for
people," Robinson said. "I don't see how this can be construed
as anything other than that."
Robinson said his store has not had any safety problems, and he
already is hoping to build more stores. Machover, too, wants to
open 20 Rx Depot storefronts within six months.
New York State, however, is watching the situation carefully.
The state Education Department, which regulates pharmacies, has
begun a review of Rx Depot and other reimporters, said spokesman
Billy Hirschen, who argued the companies may be "engaged in the
illegal practice of pharmacy."
The reimporters seem undeterred by regulators' efforts to shut
them down, saying their critics are only concerned with big
drugmakers' profits.
"I think the politicians are walking a very fine line between
satisfying the drug lobbies and satisfying their constituents,"
said East Hampton resident Stephen Zimmerman, whose home-based
reimporting business caters particularly to residents of
assisted living and retirement facilities.
Hubbard denies that charge, saying the FDA's pursuit of
reimporters is solely based on the safety concern. He and
Trewhitt point to other cost-lowering measures for seniors, such
as generic drugs and a potential Medicare prescription drug
benefit.
But Machover stands by his business.
"They have no legal right to shut us down," Machover said.
"Until this government passes legislation that will give the
elderly the ability to afford their prescriptions, I'm going to
do this."
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