Obama's cross-border prescription drug trade plans watched closely

U.S. President Barack Obama's $3.55-trillion (U.S.) budget that supports allowing people to buy cheaper medicines from Canada needs to be weighed in relation to his health-care reform plans, the head of a Canadian pharmacists group said Friday.

On Thursday, Obama released his fiscal plan, which supports the U.S. Food and Drug Administration's "new efforts to allow Americans to buy safe and effective drugs from other countries."

More information is expected when Obama releases a detailed budget in April.

In the meantime, the executive director of the Canadian Pharmacists Association said the budget proposal does not change the group's concerns about a more open border for prescription drugs.

"Our system is designed to meet the needs of 30 million Canadians, it is not designed to meet the needs of 300 million U.S. citizens," Dr. Jeff Poston said.

The FDA has objected to Americans importing drugs from other countries, including Canada, citing concerns about safety.

U.S. administration eyeing price controls

Nevertheless, cross-border trade in prescription medications sold over the Internet is estimated to have been more than $1 billion US annually. It peaked about four years ago, but then a high Canadian dollar and Medicare changes for seniors in the U.S. dampened demand, Poston said.

"It kind of fits in to this sort of strategy of the Obama government appearing to be wanting to put pressure on the [U.S.] industry, and to try to get some sort of price regulation, price control mechanism in place.

"But I think we have to wait to see what the whole health-care package is going to look like in the States."

If the U.S. health-care reforms improve access to more affordable medications, then Americans may not need to look to Canada or other countries, Poston said.

Drug prices are lower in Canada because of price controls.

The move comes amid global concerns over counterfeit medications sold over the Internet by unlicensed pharmacies.