CVS Endorses Imports; Infrastructure Already In Place, CEO Says
Executive Summary
Much of the infrastructure for importing drugs is already in place, CVS CEO Thomas Ryan said May 5 at a meeting of the HHS importation task force
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Much of the infrastructure for importing drugs is already in place, CVS CEO Thomas Ryan said May 5 at a meeting of the HHS importation task force. A bulk importation system would involve "adding some safeguards to the safe, well-established distribution system already in place in the U.S.," but would require significantly fewer resources than policing legalized direct importation by consumers, Ryan said. The exec suggested an importation system under which established U.S. wholesalers import drugs in bulk from approved foreign exporters, who would pay a fee toward the cost of additional oversight and inspections. American pharmacies would purchase and dispense the drugs. Savings could be realized because importation would work through existing channels. "They would be just calling on drugs the way we normally would call on them. I'm oversimplifying it, but I don't think there would be a lot of cost," Ryan said. CVS' primary challenge would be ensuring the quantity, rather than the safety, of imported drugs, Ryan noted. "Our issue would not be the safety issue. Our issue at the end of the day would probably be a supply issue. Would we, in fact, get the necessary supply?" Drug wholesalers maintain that increased demand for a small number of Canadian pharmaceuticals would make widespread importation unsustainable (1 (Also see "Rx Importation Unsustainable Because Of Supply/Demand Imbalance – HDMA" - Pink Sheet, 12 Apr, 2004.), p. 20). State attorneys general urged the task force to adopt a state-based importation system (see 2 (Also see "Rx Importation Should Be Implemented At State Level, Attorneys General Say" - Pink Sheet, 10 May, 2004.) ). Because of limited supply, lower-priced imported drugs should be designated for uninsured consumers, Ryan said. "Making imports available to any and all payors would likely strain supplies to the point where cost savings would disappear." Importation is only a temporary solution for immediate relief, Ryan said. The long-term goal should be more equitable global pricing. The current pricing model "simply cannot be sustained," he said. |