McCain pushes drug-import bill opposed by Lilly-WEB ONLY

Prescription-drug imports to the United States would be allowed under a bill introduced by former presidential candidate John McCain and two other senators, Bloomberg News reported yesterday.

The plan, sponsored by McCain (R-Ariz.), Olympia Snowe (R-Maine) and Byron Dorgan (D-N.D.), is supported by President Barack Obama’s budget, but is opposed by the nation’s pharmaceutical industry, including Indianapolis-based Eli Lilly and Co.

“Lilly is disappointed that Congress continues to pursue drug-importation schemes, which, time and again, under multiple administrations, have been proven to be unsafe and to not produce lower health care costs,” said Ed Sagebiel, manager of corporate communications for Lilly, in an e-mailed statement to IBJ. “Drug importation threatens to expose Americans to dangerous counterfeit products and potentially weaken the Food and Drug Administration by crippling the agency’s ability to fulfill its mission in protecting public health and safety.”

Brand-name drugs in other countries cost as much as 70 percent less than in the United States. Allowing imports from countries such as Canada could save Americans $50 billion over the next decade, including $10 billion for the U.S. government in Medicaid and Medicare costs, the lawmakers said.

Imported drugs are often cheaper because governments in those countries restrict the prices manufacturers can charge for the drugs.

“We do expect this [bill] to pass,” said Julia Wanzco, a spokeswoman for Snowe, in an interview with Bloomberg yesterday. “Part of the reason why this is such a big deal right now is because Obama announced in his budget a strong interest in implementing this policy.”

The Pharmaceutical Research and Manufacturers of America, a Washington-based trade organization of drugmakers that includes Lilly, opposes the legislation. The group said importation could lead to drug counterfeiting and adulteration.

“Two former Secretaries of the Department of Health and Human Services – Donna Shalala under President Clinton and Tommy Thompson under President Bush – both stated that they could not certify the safety or cost-savings of imported prescription drugs from foreign countries,” Lilly’s Sagebiel said. “Moreover, interest in prescription drug importation is waning in part due to the millions of seniors’ accessing medicines and saving money through the Medicare prescription drug program, and consumer weariness in the aftermath of recalled tainted foreign products.”

Business advocates say drug-maker profits could suffer if importation becomes widespread, stifling research and decreasing the industry’s incentive to discover new drugs.

Business advocates say drug-maker profits could suffer if importation becomes widespread, stifling research and decreasing their incentive to discover new drugs.