Reimportation. The reimportation of prescription drugs from Canada to the United States has been an important national issue over the past years. Many Americans complain that prescription drugs are too expensive and other countries sell the same drugs for

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Reimportation

In 1988, Congress passed the Prescription Drug Marketing Act which banned the reimportation of U.S-made prescription drugs. Reimportation is defined as a product exported from the United States and then imported back into the country (Reimportation). The reimportation of prescription drugs from Canada to the United States has been an important national issue over the past years. Many Americans complain that prescription drugs are too expensive and other countries sell the same drugs for less money. Thus, many American citizens have been ignoring the law and purchasing drugs from bordering countries such as Canada and Mexico as well as from the internet. Following the election, newly elected democratic controlled house and senate are gearing up for a renewed push to remove the reimportation ban. Ken Johnson, senior vice president of the Pharmaceutical Research and Manufacturers of America stated, “I don’t think there’s any question there will be renewed attempts to pass reimportation legislation in the new Congress. It’s a fight that’s been going on for years now. Given the new leadership and its priorities, we expect it to pop up again” (Bridges).  On the surface, freer markets and lower prices for American consumers appear to be benefits that should be broadly supported, however reimportation laws which provide American Pharmaceutical companies with opportunities to recover very expensive R&D costs, ensure the safety and quality of prescription drugs and provide a broader benefit to all Americans. 

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The reimportation ban of 1988 greatly fuels drug company’s funds for the R&D that is necessary to continue producing new drugs. An April Congressional Budget Officer brief addressed the up-front costs of drugs by citing a recent study: “when all relevant economic costs are taken into account, including cost from unsuccessful compounds, an average $800 million in R&D spending is incurred for each internally new compound reaching the market” (Pilon). More precisely, American drug companies spend around $800 million dollars in research and development for each drug that they attempt to create and put on the market. Out of all ...

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