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August 20, 2004

Oregon Gov. Ted Kulongoski announces a plan that if approved by the federal government, would allow Oregonians to buy cheaper prescription drugs from Canada. He spoke Thursday morning at the Medford library; Rep. Alan Bates, a doctor, was at his side.
Mail Tribune / Roy Musitelli

Oregon plan taps drugs from Canada

Oregonians could buy cheaper prescription drugs if the federal government would grant a waiver

By BILL KETTLER
Mail Tribune

Gov. Ted Kulongoski unveiled a plan Thursday in Medford that would allow Oregonians to buy drugs from Canada.

The Pioneer Prescription Drug Project would use the Oregon Board of Pharmacy to certify that Canadian drugs meet the same standards of purity and safety that are required for drugs sold in the United States.

At a press conference in the Central Library, Kulongoski said he has sent a letter to U.S. Health and Human Services Secretary Tommy Thompson requesting a waiver from the federal law that prevents states from importing drugs that are not approved by the U.S. Food and Drug Administration.

"Oregon already has the tools in place," he said, "to import prescription drugs from Canada that both meet the highest standard of quality and ensure real cost-savings for the people of Oregon."

Kulongoski said he asked federal officials to respond within 30 days.

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While not all drugs cost less in Canada, he noted that Oregon prices for 12 common brand-name prescription drugs average about 40 percent higher than Canadian prices.

Under the proposal, Oregon pharmacists would be allowed to import only products approved by the state Board of Pharmacy and supplied by approved wholesalers. The board would license and inspect Canadian drug wholesalers to assure that they meet the same standards that Oregon requires of U.S. drug suppliers.

Prescription drugs in the plan would be limited to those for which potential savings can be demonstrated, Kulongoski said.

The governor’s request adds Oregon to the growing list of states trying to help their residents cut drug costs. Illinois, New Hampshire, Minnesota and Wisconsin have all set up Web sites to help their residents obtain drugs from Canada and other countries.

Many Oregonians already buy medicines from Canadian pharmacies, but problems have surfaced as those pharmacies struggle to meet soaring demand, said Blake Rice of Riddle, president of the Oregon Board of Pharmacy.

Rice said some "Canadian" drugs have been traced back to Iran, Iraq and other Asian countries. He noted that at least one Canadian pharmacy had contracted with a pharmacy in Bangladesh to put a Canadian label on its drugs and ship them to the United States.

"Those drugs never touched Canadian soil," he said.

By enlisting the pharmacy board to certify imported drugs, Oregon’s plan includes safety measures that are missing in other states, Rice said.

"The governor’s plan is one of the most innovative to be submitted so far," he said.

Whether federal officials will approve the waiver remains to be seen, Rice said.

"I don’t see Health and Human Services changing its mind until Congress passes legislation," he said.

He noted however, that drug companies are under fire for charging more in the United States. "They realize their discriminatory pricing has gotten them into a deep hole.

"The feds need to look at making the drug companies accountable for drug pricing in this country," he said.

State Rep. Alan Bates (D-Ashland), the only physician in the Oregon Legislature, gave the proposal a 1-in-4 chance of approval.

"The pressure building (for lower drug prices) is huge," Bates said, "and it’s not just in Oregon."

Bates said federal officials might decide to approve a state plan as a face-saving measure to avoid pushing more states into open defiance of federal law.

"When you’ve got 10 or 15 states ignoring a federal law," he said, "you’ve got a problem."

The FDA has repeatedly denied state requests to import drugs from Canada. Vermont has filed a lawsuit against the federal agency.

Kulongoski talked about the plan at a midday press conference in Portland, where he said Oregon might also sue if the waiver request is denied. Or the state could follow Illinois, Minnesota and other states by creating an online clearinghouse of overseas pharmacies where residents can purchase drugs.

The Associated Press contributed to this story.

Reach reporter Bill Kettler at 776-4492, or e-mail bkettler@mailtribune.com




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