Case Study on

U.S. imports of prescription drugs from Canada should be widened

Course Name: Marketing Management

Course Code: MGT-304

Submitted to-

Proshanta Kumar Podder

Lecturer

Department of Management Studies

Rabindra University, Bangladesh

Submitted by-
Tithi Biswas

ID no. 19030101

BBA 4th Year (1st Batch)

Session: 2018-19

Department of Management Studies

Rabindra University, Bangladesh

Date of Submission: 3 May, 2023

Table of Contents:

Case Summary ------------------------------------------------------------------------------------ 1

Question - Answer 7-5 --------------------------------------------------------------------------- 1
Question - Answer 7-6 --------------------------------------------------------------------------- 2
Question - Answer 7-7 --------------------------------------------------------------------------- 2
Question - Answer 7-8 --------------------------------------------------------------------------- 2-3
Question - Answer 7-9 --------------------------------------------------------------------------- 3-4
Question - Answer 7-10 -------------------------------------------------------------------------- 4
Case Summary:
Background Drug importation is a strategy approach targeted at decreasing increasing
pharmaceutical expenses. The Federal Food, Drug, and Cosmetic Act imposes limits on drug
importation, but the Director of Health and Human Services (HHS) can approve importation.
The accessibility of prescribed pharmaceuticals continues to take a substantial place in health
policy discussion as part of the larger discourse on increasing healthcare expenses in the United
States, with the majority of Americans stating that decreasing their cost is a top health care
goal. As per policy, only pharmaceuticals that have been authorized by Health Canada would
be acceptable. Male and female life expectancy at birth risen by 9.1 and 6.8 years, respectively,
over a 50 - year relevant period in 2015. Though there are a variety of factors attributing to this
upsurge, one of most significant was the introduction and accessibility of medications. Only
pharmaceutical enterprises have been allowed to purchase their products into the United States
since the Prescription Drug Marketing Legislation was enacted in 1987. Concurrently, these
companies sell the same pharmaceuticals in those other countries, often at a cheaper rate than
in the United States. The reduced foreign pricing is the product of a complex of macroeconomic
variables and foreign governments, like Canada's, establishing optimum selling prices. In the
United States, though the federal or state authorities are restricted from discussing medicine
costs. Drugs sold in Canada are frequently produced and shipped from the United States or
from an international facility by a U.S. company that exports to many countries.

Question 7-5: Should the United States legalize the importation of lower cost
pharmaceuticals? If so, should this apply to individual consumers, pharmacies, or other
entities?
Answer: The United States should legalize the importation of lower-cost pharmaceuticals. This
will save the cost of purchasing medicines to the patients especially low-income earners who
are left to suffer since they cannot afford to purchase the medicines sold by the pharmacies due
to their high costs. However, the importation should be regulated by strict rules and policies so
that the patient's health is not put on risks as this importation would lead to the purchase of
low-quality tests jeopardizing patients' health. The drugs imported should pass a standard test
and pharmacies should acquire certification from the government.
This importation should apply to pharmacies since pharmacies are usually regulated by health
care rules and policies so the risk of importation of low-quality drugs is low because if caught,
they can be banned from operating. Individual consumers should not be allowed to import
low-cost drugs as some individuals may take advantage and import low-quality
pharmaceuticals at a cheaper price and sell to the patients at a high cost.
I think the United States should legalize the importation of lower costs pharmaceuticals at least
to individual consumers so that healthcare within the U.S. is more affordable. As long as price
increases regulations are implemented in pharmacies, low cost pharmaceuticals could also be
legalized for them, however it would need to be watched more closely to make sure the
pharmacies are not raising prices backup to increase profits at the expense of the consumer

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Question 7-6: It the United States were to permit importation of lower cost
pharmaceuticals from abroad, should this importation apply to all foreign countries or a
limited number? If a limited number, which should they be and why?
Answer: Yes, it will apply to all foreign countries.
If the U.S. approves imports of lower-cost drug products from other nations, it will apply to all
foreign countries as long as the drug products adhere with the U.S. Quality Guidelines for such
drug products. The nature of the item, on the other hand, is irrelevant in this case. As a result,
strictly enforced regulation is necessary to ensure that only commodities that meet the required
requirements are imported into the United States.
I think that if the United States were to permit importation of lower cost pharmaceuticals from
abroad it should limit it to countries that have the same or similar Food and Drug
Administration standards to protect U.S. citizens. If the U.S. were to allow all foreign countries
to export pharmaceuticals into the nation it may be harder to regulate and could result in good
that have been tampered with or are not fit for consumption. By limiting to countries with well-
established FDA standards the U.S. can maintain control over the imported pharmaceuticals.

Question 7-7: If the United States were to permit importation of lower cost
pharmaceuticals from Canada, what safeguards should be enacted to help assure the
safety and efficacy of the imports?
Answer: The key concern with legalizing pharmaceutical importation is the quality of the
drugs as well as the safety of the people who will be using them. Any modifications to our
current regulatory system must be undertaken with caution in order to ensure that our country's
medicines supply remains safe and effective in the future. To ensure that public health and
safety are not jeopardized in any way, the Secretary of Health and Human Services (HHS) must
certify that the drugs to be imported under the program will not pose an additional threat to
public health or safety, and that they will result in a significant reduction in the cost of covered
products for the American consumer. The United States government and the Food and Drug
Administration (FDA) would need to work together with the Canadian government and Health
Canada to guarantee that the imported items met U.S. criteria.

Question 7-8: If the United States were to permit importation of lower cost
pharmaceuticals from abroad, should this apply to all pharmaceuticals or just to some?
If just to some, what criteria should be used?
Answer: 'Drug importation' refers to the procedure of bringing prescription medications from
one country to another for sale.
The authorization for the import of lower-cost drugs would only apply to pharmaceuticals with
extremely high pricing in the United States and are in significant demand in places where the
country cannot meet domestic demand on a regular basis. Furthermore, medications with

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extremely high prices will be imported first, in accordance with government criteria, preventing
the entry of other products.
If the United States were to permit importation of lower cost pharmaceuticals from abroad,
there are arguments for applying this policy to all pharmaceuticals, as well as for applying it
only to some.
All pharmaceuticals: Allowing importation of all pharmaceuticals could increase competition
and result in the greatest possible cost savings for consumers. This approach would also provide
consumers with greater flexibility in choosing where to purchase their medications, potentially
leading to more competitive prices.
Some pharmaceuticals: On the other hand, limiting importation to some pharmaceuticals
could allow for more stringent safety and quality controls. This approach could reduce the risk
of counterfeit or substandard drugs entering the market, as the government could focus on
ensuring the safety and quality of drugs in specific categories. If importation is limited to some
pharmaceuticals, the criteria for selection might include:
i. Price disparities: Importing pharmaceuticals that have a significant price difference
between the U.S. and other countries could result in the greatest cost savings for consumers.
Essential medicines: Importing essential medicines, such as those used to treat life-threatening
conditions, could help to ensure that all people have access to the medicines they need to stay
healthy.
ii. Safety concerns: Importing pharmaceuticals that have been deemed safe for use in other
countries could reduce the risk of safety concerns and adverse reactions.
iii. Market dynamics: Importing pharmaceuticals that are in high demand and that are not
manufactured in the U.S. could help to increase competition and reduce prices for consumers.
Ultimately, the decision on which pharmaceuticals to import would likely depend on a
number of factors, including the specific goals of the policy, the state of the global
pharmaceutical market, and the level of political and economic stability in individual countries.

Question 7-9: If pharmacies were allowed to import less costly drugs from abroad, should
regulations be put into effect to pass on some/ all cost savings to consumers? If so, what
should they be?
Answer: In my opinion, importers should develop and implement laws that offer customers
with cost savings. Drug companies should therefore avoid using customers by charging
exaggerated amount of money. They should hence seek ways of safeguarding proscription
product via observation of regulations and various guidelines.
Drugs are usually imported in home countries because of two major reasons. The first reason
is because prescription drugs are very expensive in home country. The second reason is because
of unfair pricing of drugs (Fda.gov, 2019). Free trade is a significant factor in this era of

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globalization which makes importation much easier. Many drug producing companies has
made it difficult for consumers by exaggerating prices.
To wrap up, importers should develop and implement laws and regulation that offer customers
with cost savings. My idea can be supported partially by current era where we are living in a
pharmaceutical era. It is where a new established drug is often used to make surgery fatal and
unnecessary. This is possible due to development and advancement in biotechnology and
medical. Drug companies should therefore avoid using customers by charging exaggerated
amount of money. They should hence seek various ways of safeguarding prescription product
via observation of regulations and various guidelines.

Question 7-10: Consumers seldom propose the reduction of import restrictions to lower
their costs. Why has this occurred for pharmaceuticals and not for other products?
Answer: The reason is that imported pharmaceuticals are mostly generic that are not covered
by patents thus lowering their costs. Other imported goods need to be original otherwise they
will be considered to be pirated.
Pharmaceutical imports will lower the cost of drugs making them affordable to everybody.
Since generic drugs come from foreign nations, consumer groups are advocating for lower
price restrictions.
I think there's currently a cultural shift into how Americans view the nation’s health insurance
policy products that is negatively impacting the consumer trust in the industry, resulting in the
proposal of the reduction of import restrictions to lower their costs. Currently many medical
practices and pharmaceuticals associated are only being sold at inflated prices under the
assumption that insurance will cover much of the cost. However, many Americans cannot
afford full coverage insurance and end up footing the bill expected to be paid by massive
corporations all on their own. Choosing to pay these large fees outs many citizens in debt for a
number of years or may sacrifice their health if they cannot afford the right care.