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Subject: Press Release: New IPI Study Says Drug Reimportation May Result in Higher, Not Lower Consumer Costs
Date: Tue, 14 Sep 2004 11:46:55 -0400
From: Sonia Hoffman <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
Institute for Policy Innovation (IPI) Press Release
For Immediate Release: Tuesday, September 14, 2004 Contact: Sonia Hoffman, (703) 912-5742 or [EMAIL PROTECTED] ********************************************************************
New IPI Study Says Drug Reimportation May Result in Higher, Not Lower Consumer Costs
European Comparison: Importation Decreases R&D
(Washington, DC): The long-run costs of importation are easily ignored by politicians like Illinois Governor Rod Blagojevic who is granting access to cheaper drugs by expanding Internet purchasing of pharmaceuticals from countries like Canada and Ireland. But this search for a quick bargain could prove expensive, as the Governor isnât likely to be in office when future data proves importation harmful.
According to a new study by the Institute for Policy Innovation (IPI), reimporting drugs is not a guarantee for cheaper prices, and in the long-run, may result in more expensive drugs and medicine shortages.
Prescription drug importation âamount[s] not so much to consumer or government savings as to increased profits for pharmacists and producers,â says Jacob Arfwedson, author of âParallel Trade in Pharmaceuticals.â
Further evidence against importation is found in Arfwedsonâs comparison of the US and Europe.
Share of R&D: As the U.S. has stayed off importation, it has gained the lionâs share of pharmaceutical research and development (R&D).
This is quite a contrast to the 1960s when European countries did most of the R&D. European R&D has decreased from 73 percent to 59 percent (1990-1999, percentage of European companiesâ global R&D expenditure).
Share of World Pharmaceutical Market: The U.S. has also increased its share of the world pharmaceutical market from 31 to 43 percent over the past decade. In contrast, as Europe has allowed more importation, its share in the world pharmaceutical market has declined from 32 to 22 percent.
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For copies of âParallel Trade in Pharmaceuticals,â visit www.ipi.org or contact Sonia Hoffman at [EMAIL PROTECTED] or (703) 912-5742. Press interviews welcomed.
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