The U.S. pharmaceutical Canadian pharmacy industry is certainly on track to clash with the Canadian pharmaceutical industry. Canadian pharmaceutical companies have captured much of the U.S. domestic market. Since drug prices in Canada are much lower than in the United States, and this trend will continue for a long time, Canadian companies are harvesting a rich harvest at the expense of American companies. As a result, American companies shout sharply and accuse their Canadian counterparts of unfair business practices.
Its origins date back to the early 1990s, when American companies urged trade between the three North American states – the United States, Canada and Mexico – to allow the free flow of goods between the three countries. without any obligation. Then there was NAFTA, or the North American Free Trade Agreement, which contained all these provisions.
U.S. companies benefited greatly from the agreement by moving their production facilities to these countries, where costs were lower and finished products were sold back to them. The cost of production of U.S. companies began to fall, and profits rose sharply. American firms, whose main competitors were from Europe, took advantage of the fact that all research centers were located in Canada, where costs were lower.
The brilliant phase of the American business quickly came to an end when Canadian companies became smarter and began selling the same drugs to American customers at a lower price. Canadian companies believed that because their research and development costs were lower, they could sell their drugs to American customers at low prices while making good profits. Drug prices in Canada are strictly controlled by the government.
In an aggressive spirit, Canadian companies moved to their border states and also began selling to their customers over the Internet as well as by mail.
U.S. law prohibits the importation of controlled drugs from Canada. However, an exception is made if they are intended for personal use by the patient, then a quota of 3 months is allowed. Each patient can save an average of $50 to $200 a month to buy drugs in Canada.
Most Americans are forced to buy medicines that are exported and then imported again for their own consumption, leading to a sharp rise in prices.
The sale of medicines over the Internet has become an important focus for Canadian pharmaceutical companies. These products of comparable quality with low production costs attract many buyers. As a result, U.S. corporate profits are declining.
Another interesting feature – all these drugs are produced in one factory, all raw materials and finished products are imported into Canada.
Because of the differentiated pricing system in the United States for retail customers and for large buyers such as insurance companies, the actual price of the drug is never known. Retail
Is it possible to get really big savings by buying drugs in Canada online? Yes, if you know what you’re looking for. Not all medicines that can be found in Canada are cheaper than here in the United States. Many of our generics here in the United States are even cheaper than in Canada. In fact, many Canadians use U.S. online pharmacies to obtain generic prescription drugs. But branded drugs such as Lipitor can be found much cheaper in Canada.
The reason that generics in Canada do not bring as much savings as here in the United States is because of price control in Canada. Price control is the provisions that determine the prices of new drugs brought to market. This means that all medicines, branded or generics, must remain in the same price range. Although price controls do not allow you to charge an odd amount of money for a brand new drug, it also does not allow the offer of generic drugs at significantly lower prices than the branded alternative.