HHS Importation Task Force
Public Meeting
Wednesday, April 14, 2004
Natcher Auditorium, National Institutes of Health
Bethesda, Maryland
I. Opening Remarks
II. Presentations from Registered Speakers
Rick Roberts, Consumer
Rene Rodriguez, Inter-American College of Physicians &
Surgeons
Noel T. (Tom) Curb, SPC Global Technologies
Peter Neupert, drugstore.com
Kurt Hilzinger, Healthcare Distribution and Management Association
The Honorable Jim Doyle, Governor of Wisconsin
Mark Barondess; Christensen, Miller, Fink, Jacobs,
Glaser, Weil & Shapiro, LLP
Sharon Cohen, Biotechnology Industry Organization
Pete Sepp, National Taxpayers’ Union
Bruce Kuhlik, Pharmaceutical Research and Manufacturing
Association
James Green, King Pharmaceuticals
Flora Green, The Seniors’ Coalition
Scott McKibbon, Special Advocate for Prescription Drugs, State of
IL.
Ram Kamath, Special Advocate for Prescription Drugs, State of IL.
Lothar Dueck, Coalition for Manitoba Pharmacy
Joel Miller, National Alliance for the Mentally Ill
Panos Kanavos, London School of Economics
Lunch break
Jeffrey Axelrad, Consultant
Jack Sharry, Group Benefits Strategies
Bernard Kerik, Kerik-Kerik, LLC
Lew Kontnik, Consultant
Durhane Wong-Reiger, Consumer Advocare Network
Louise Binder, Canadian Treatment Action Council
Gary Stein, American Society of Health Systems Pharmacists
Charles Hardin, RetireSafe.com; Council for Government Reform
Lynda Mitchell, Parents of Food Allergic Kids
Jim Rittenburg, Authentix
James Love, Consumer Project on Technology
Raymond Keating, Small Business Survival Committee
Jamie Martinez, Latinos Unidos Health Access Alliance
Nancy Martin, Pharm-D
I. Opening Statement – Task Force Chair, Vice Admiral Richard
H. Carmona, M.D., M.P.H., FACS
Good morning, ladies and gentlemen. I would like to call meeting to
order and start the meting. I am Richard Carmona, the U.S. Surgeon
General. I would like to welcome you to this public meeting of the
Task Force on Drug Importation. Today we will hear from members of
the public who have indicated that they would like to make
presentations to this task force.
Secretary of Health and Human Services Tommy Thompson formed this
task force to explore whether and how drug importation might be
conducted safely and its potential impact on the health of American
patients, medical costs, and the development of new medicines.
On behalf of Secretary Thompson, I want to thank the members of the
task force for your willingness to work on this important issue.
It’s an extraordinarily complex topic that challenges the
best minds in the field.
The past two weeks, we have held the first two listening sessions
of this task force. We heard presentations, in the first session
from consumer and advocacy groups, and at the second session from
pharmaceutical development and distribution companies. Those
presentations were very useful to this task force. I thank the
presenters not only for their thoughtful presentations but also for
their responses to our follow-up questions.
The safety and efficacy questions related to importing prescription
drugs into our country are very important to the nation’s
health.
As a trauma surgeon, the former CEO of a health system, and now
doctor the American people, I understand the critical role that
prescription drugs have in our public health system. The miracles
of modern medicine are often found in a pill. It’s truly
wonderful that science has brought us medications that can unclog
arteries, lower blood pressure, cure infection, and save or enhance
life.
Millions of Americans have come to depend on prescription drugs to
keep them healthy. The biomedical research that has led us to the
development of these drugs is truly awesome.
The task force is first and foremost about the facts and the
science. And we will go as far as the facts and the science will
lead us. I thank everyone, in advance, for keeping this in mind.
Together, this task force, the members of the public, and the
stakeholders are exploring whether prescription drug importation
can be done safely and effectively. And if so, what resources are
needed. Our mission, outlined in the Medicare Prescription Drug
Improvement and Modernization Act of 2003, is to determine whether
there is a safe structure for prescription drug importation.
As I did at our first two sessions, I want to promise all of the
presenters today and in the future meetings, the opportunity to be
heard. I expect this process to be completely transparent, with
frank, open, and honest discussion about the health implications of
drug importation. I expect that diverse ideas will be presented,
and I ask everyone to be respectful of that diversity.
These meetings are being conducted in an organized manner, in an
effort to produce the best possible information. As with previous
sessions, each of today’s presenters will have up to five
minutes for prepared remarks. Please note, in the front is a timer;
goes from green to yellow to red. I’d ask speakers the
speakers to be cognizant of it, when you see the yellow light, you
have about a minute left, and I’d ask you to begin summing up
at that point. After a presenter has concluded his or her remarks,
the task force members may follow up with some questions for that
presenter.
I ask each presenter to be mindful of the five-minute limit for
presentations so we can ensure that everyone has an equal
opportunity to be heard. In addition, the task force will welcome
all written and supporting materials that parties would like to
submit.
Those materials, along with the transcript of each listening
session, will be available to the public, The Department of Health
and Human Services has developed a web site for the task force that
can be reached through www.hhs.gov
One last bit of business; is there anyone in the audience that
would require signing for any of their presentations this morning?
Because we want to make sure that’s available. Nobody is
identified; OK, thanks so much.
With that, lets get going with today’s business. I would like
again to thank my fellow task force members for their time and we
will now welcome the first presenter and that would be Rick
Roberts. Mr. Roberts, thank you and Mr. Roberts let me just mention
for you and any of the speakers, that you have the option to come
to the podium on the stage if you like, or use one of the three
microphones -- the one you’re at or either at the two aisles
– so, whatever makes any of the presenters the most
comfortable to you, please make the selection of where you’d
like to be.
Presentations from Registered Speakers
Rick Roberts, Consumer
Great, thank you, and I’m just going to move this, if
that’s OK, ‘cause I can’t see the light from here
and I want to try to stay to my time.
My name is Rick Roberts and I feel very fortunate to be here today.
And I’m glad to have the opportunity and I thank you for the
chance to share my experience, what I have learned through those
experiences, and my concerns about importation and reimportation.
I started college as an 18-year old in 1981 in San Francisco. I was
infected with HIV in the early 80’s. As you know, HIV was
later discovered and in 1988, I became ill and was diagnosed with
AIDS Related Complex, which progressed to AIDS. I’m going to
kind of fast forward 12 years from that time to the year 2000.
Those 12 years were an interesting time; had some ups and some
downs, but in the year 2000 I was diagnosed with AIDS wasting
syndrome, although it doesn’t look like it right now, I was
wasting at that time. And I had failed on a couple of therapies and
my doctor said our last try was going to be a drug called Serostim
recombinant human growth hormone. And that cost four to six
thousand dollars a month, and I was fortunate enough to have the
insurance company approve a 12-month supply.
I started injecting that and had very good results. More than half
way through my time of injecting Serostim, I noticed a stinging at
the injection sites that I hadn’t noticed before, and some
subtle differences in packaging and in the amount – or the
dose – of the power itself. What… I wasn’t
alarmed. I’ve had lots of drugs change size, shape, color. I
just a note I wanted to ask my pharmacist, so I went into the CVS
pharmacy where I got my Serostim every month and I asked the
pharmacist. And, I told him what was going on and I asked him if I
was doing something wrong or if something had changed? And he
nonchalantly commented that “You should go home and check,
because you may have received some of the fake stuff.”
So, I did go home, and by the time I got off the bus and got home I
had convinced myself I must have misunderstood what he said,
because how could that be? I went to the CVS pharmacy in my
neighborhood and it was the box just as it was supposed to be. I
was wrapped in plastic, it has the label on it. Fake stuff. I went
online and, sure enough, found an article in the Boston
Globe. Three paragraphs saying that fake Serostim could be
found in seven different states. And that the FDA was doing an
investigation. Went to the FDA website, found the notice there;
went to Serono, the manufacturer’s web site and they said
were cooperating with the FDA.
I called my doctor. She hadn’t heard about this. Went in to
talk to her and she said, we have to find out if it wasn’t
growth hormone what it was you were injecting, because we need to
know if there’s something we should be doing if you have done
some harm, we want to counter that -- we need to find out. We
couldn’t find out. Nobody knew what was in those vials. Which
started, for me, a really difficult time of not being able to
sleep, I became very preoccupied. Couldn’t focus; I teach at
the University of San Francisco, and found it really difficult to
do what I was supposed to do. I started having anxiety attacks. For
12 years, we knew who the enemy was, we were fighting HIV. For the
first time, I had no idea what we were up against.
In my mind, though, I kept going to the thoughts that they had put
Hepatitis-C in those vials, and I had injected myself with
Hepatitis-C. And, that’s what I thought. It took three months
to find out that it wasn’t Hepatitis-C in those vials. I had
been injecting HCG – Human Chorionic Gonadotropin -- which is
the hormone women make when they are pregnant and it’s used
as a fertility drug. It’s not meant to be injected
subcutaneously, and it’s certainly not meant to be injected
every day. It does explain why I was an emotional wreck for a
while. So, I, though, discovered that I had received two different
batches perpetrated by two different persons or groups. The second
batch, I found out three months later, had contained that form of
growth hormone but, based on the contaminants, it was probably
produced outside of the U.S. and it was 1/6 the dose I was supposed
to be receiving.
How does this relate to reimportation or importation? I had gone
through an American pharmacy. It turns out that this was
distributed through the secondary market, through a licensed
wholesaler in Florida. As far back as I know that it’s been
traced, who sold it to a licensed wholesaler in Las Vegas, Nevada,
who sold it to a secondary licensed distributor in New York. This
is much like money laundering to clear the pedigree, because once
they put it through an authorized dealer, the pedigree
doesn’t have to be included in the next sale. And then it was
sold to the major distributors who had contracts with the major
pharmacies and that’s how it got to the seven different
states.
I have since worked with – talked with the FDI, to the
manufacturers, the Nevada Board of Pharmacy the law enforcement
agency for the state of Florida (who investigates counterfeit
medicine), and even the FBI. I have testified against these bad
guys. They are really bad – they don’t care. They found
$47 million of bad medicine in Florida in one year: cases of
insulin, not refrigerated in the Florida sun. These are bad guys,
and they know what they’re doing and they do it really well.
I have learned that the longer the distribution chain, the more
likely -- or the more doors are opened for these bad guys to do
what they want to do which is to make money at the expense of sick
people. So, I need to sum up. I am afraid… these are my
concerns: that as we elongate and go outside the jurisdiction of
the FDA, and we go with links in this chain of distribution, that
we create opportunities for the bad guys.
So, the safely issue, I don’t think, is secondary or a
smoke-screen, as people have told me. I think it is a primary
concern. My concern is that, people like me, who may receive a
counterfeit, what recourse do we have? What do we have –
where do we find relief? Who would we find responsible? If
we’re having trouble paying for our medicines – and
I’ve been there, maxed out my credit cards buying AZT in the
80’s, and borrowed money to get my medicine – I’m
not going to going to be able to afford an international tort
lawyer to represent me in some other country. Who will be
responsible if this happens and why would we open the doors that
would allow this to happen? I don’t know of any savings
monetarily or discounts that could be offered that would make it
worth jeopardizing people’s health, or allowing the bad guys
to do to you or anyone in this country what they’ve done to
me. Again, thank you. I feel fortunate to be here, and thanks for
listening to my story.
Carmona – Thanks very much Mr. Roberts. Would you hang on
just a second in case any of our task force members have any
questions of you?
Roberts – Yes, sorry.
Carmona – Thanks. We’ll all get used to it as we go
through the day. Members, anybody have any questions for Mr.
Roberts? Yes, Dr. Crawford.
Lester Crawford, DVM, PhD, FDA deputy commissioner –
I’d just like to thank you for that testimony and for your
courage in being here. Since the event in the year 2000, obviously
you have educated yourself about this problem. Are there special
steps you could share with the group that you yourself take in
order to ensure against this happening again?
Roberts – Yes. I am now well-known to my pharmacy, I go to
another pharmacy. I go -- it’s a 24-hour pharmacy -- I
usually go after midnight. They know me by name; they know I
won’t leave the counter until I’ve gone through every
prescription. I look at every drug before I leave the counter,
because once you take it away from the counter they can’t
take it back. They’re used to me calling with questions and
asking questions. And I question everything that’s different.
I have a bottle of Lipitor at home that we can’t track to the
Lipitor recall and I’m not going to take it. I don’t
know what the odds of getting three counterfeits are, but I’m
not going to take a chance. So, that’s what I can do, I just
think the responsibility shouldn’t fall on the patient. Cause
I don’t know what else we can do except to ask the pharmacist
or our doctors. But I do recommend, if anyone feels anything
different they hadn’t noticed before, or notices any changes,
they should check, and the FDA website is a useful place to look,
too.
Crawford – We would invite everyone to do that, on behalf of
the FDA. Thank you.
Carmona -- Other questions?
William Raub, HHS deputy assistant secretary for public health
emergency preparedness -- Just to follow up on that, when you went
back and found the drug with the burning sensation – you said
there were subtle packing differences. Can you describe those and
the quality of the product in terms of the sophistication and the
comparison?
Roberts – Would you like to see them? I have them with me.
I would, I would. Did in fact, the pharmacist that gave it to you,
that gave you the product, did they in any way realize that the
product was counterfeit? Even when you brought it back and looked
at it, could they tell that it was a counterfeit product?
Roberts -- I don’t think so, and I’m glad to share it.
I actually have the counterfeit and the real. I understand how the
pharmacist passed it one. I don’t think that they are
necessarily looking for counterfeit all the time, and you can tell
for yourselves if you could be able to identify the difference or
not. And I certainly didn’t; only because I was looking at it
so closely -- each vial -- because I was injecting it, I noticed
some subtle changes. But I don’t think… I mean,
it’s such a good counterfeit, I don’t think the
pharmacist would be able to pick it up. What was surprising to me
was that when I got home, the FDA knew, the manufacturer knew and
the pharmacy knew – because they had received a letter saying
the product had been recalled and they had sent everything they had
on their shelves back. That’s how he knew to tell me to go
home. But, nobody ever notified me. And, I’ve said this
before, when I’ve had a car part recalled, they have had to
track me down, notify me, track that part, remind me that I
didn’t get it fixed. But for some reason, there’s no
policy like that for pharmaceuticals, so I found out by chance. I
have no idea how many people might think they just failed on the
Serastim, and got the fake stuff.
Carmona – Any other questions?
Raub – It would be nice if we could see the product, if
he’s got it.
Roberts – I’ll just point something out, if I can, and
then I’ll have you take it, look at it. It comes in a
seven-day supply box, it comes with a diliant bottle and a powdered
drug bottle. This, well, top one is real; the bottom one is
counterfeit. And you can look at the vials and decide. After it
happened, Serono put a hologram on the box to help identify the
real stuff, but within a couple of months, the counterfeiters were
able to make the boxes with the holograms as well and there were
two more counterfeits of this drug a year later with the holograms
on it. The one with the hologram, the way I can tell, is because
this blue is a little bit darker on the fake one. So, when you get
it, look really closely, and this blue that’s a little darker
is the fake one
Carmona – So what you’re saying is – I
hadn’t seen those before – is that those who made this
provided countermeasures in effect to make it look the real thing,
and when we got a hologram on it, they also put a hologram on it?
Roberts – And there’s another difference. You can tell
that the labels are slightly rounded on the corners on the bottle
on the vials, that’s the real drug, and the more square
corners are the counterfeit. They weren’t real good at
cutting the labels out. But very small, subtle differences, as
you’ll see. And, with laser printing and scanning, they were
able to – they had the package insert and the instructions to
the patients, all that they were able to recreate and pass it off.
Carmona – Yes, Ms. Willis.
Elizabeth Willis, chief of the Drug Operations Section, Office of
Diversion Control, US Drug Enforcement Administration – Yes,
Mr. Roberts, you mentioned that the drug had gone through several
layers of the secondary distributors industry. Do you know how many
layers it had actually passed through?
Roberts – The FDA may have more answers. When I testified in
the case in Las Vegas against the company in Las Vegas, their sole
supply of the medicine came from a company licensed under the name
Rekcus in Florida. R-E-K-C-U-S, which is that’s
“suckers”, spelled backwards, that was their license
name in Florida. And, they were getting medicines from a number of
places; expired medicines that were supposed to be destroyed that
doctors were sending them from South Carolina so they could
reliable with new expiration dates. Things like that. They were
getting them from a lot of different places and some that were,
apparently, international. So, we’re don’t know exactly
where these started but we can trace it from Florida to Nevada to
New York -- the big three. And the FDA is still on-going, so the
FDA has a lot of things they say they can’t talk to me about.
Carmona – Other comments, questions? No? Mr. Roberts, to echo
what Dr. Crawford said, we appreciate your time and also your
willingness to expose these very private parts of your life for the
benefit to the American public.
Roberts – Yes, thanks for listening.
Carmona – Before we move on to our next speaker, let
me… I was remiss in not introducing a new member of our task
force. At the very far end on the right, Tracy Hardin, an attorney
with the Department of Justice. Her predecessor left because she
was promoted to a judgeship, I believe, and Tracy was good enough
to come and join us after being nominated by the Department of
Justice, so welcome and thank you for being with us. Our next
speaker is Dr. Rene Rodriguez, from the Inter-American College of
Physicians and Surgeons. Dr. Rodriguez, welcome and Dr. Rodriguez,
if you’d like you can use the podium on the stage or any of
the microphones on the floor. Whichever you prefer, sir, your call.
Rene Rodriguez, Inter-American College of Physicians &
Surgeons
Thank you very much, sir, and good morning. My name is Rene Rodriguez and
I am a medical doctor and president of the Inter-American College of Physicians
and Surgeons. Since 1979, we have worked to promote cooperation among U.S.
Hispanic physicians. I am here today because this great country, and some
of its most vulnerable citizens are in grave danger.
We have the safest and best medicine supply in the world but proposals for
prescription drug importation could dismantle this system. Those who favor
importation have good intentions: to lower costs and increase access to medicine.
But that they propose to do with an irresponsible and unacceptable trade-off
between price and safety. With foreign importation, the U.S. FDA would not
be able to exercise the same safety control over prescription drugs that it
does now. The drugs may be real drugs or they may be counterfeit, they may
be effective in treating patients, or they may not.
Even worse, they may actually be harmful. The truth is, we don’t know
which is which until someone has paid the ultimate price with his life. While
some think that imported drugs are somehow OK, because Canada has tough domestic
standards, nothing could be further from the truth. Imported medicine –
you saw what happened already -- are not guaranteed to have been inspected
by Canadian authorities who have stated that they do not have safety responsibility
for drugs exported to the U.S.
Doctors know that, when they prescribe a drug for a patient, that they will
be able to get real medicine that really will cure the patient. Right now,
doctors have that confidence. If this misguided proposal becomes law, no doctor
will be able to have this confidence and the health and safety of millions
of Americans will be compromised.
The Inter-American College of Physicians and Surgeons plays an important
role in minority communities. And I ask you to consider this issue from the
point of view of minorities. Minority and low-income and other traditionally
underserved populations will likely get a disproportionate share of these
bad medicines. As state Medicare programs struggle to save money, it is those
who have the least ability to pay who will be hurt the most. They will end
up with a two-tier system, where people in the suburbs get safe, FDA medicines,
and people in the barrios get medicines of unknown quality and origin. For
these reasons, we believe that importation drugs really will end up in the
low-income areas, in the barrios, and we believe they are a bad prescription
for the good medicine that we have in this country. Thank you, sir.
Carmona – Thank you, Dr. Rodriguez, task force members, does anyone
have questions for Dr. Rodriguez. No? Dr. Rodriguez, thank you so much, we
very much appreciate your being here. Our next speaker will be Steven Gibson,
from the ALS Association. Is Steve Gibson present? OK, what we’ll do
then, for a matter of administrative course in these proceedings is, if someone
is not present, they’ll just move to the end of the list. So if any
of you know Mr. Gibson and he comes in, we’ll just take him at the end
of the list. We’ll move on to our next speaker, who will be Mr. Noel
Curb, SPC Global Technologies. Mr. Curb, are you OK standing there?
Noel T. (Tom) Curb, SPC Global Technologies
Yes, I came up here; this [podium] will help hold me up. I just wondered,
did ya’ll start timing me when I started up the stairs? I told the chairman
that I’m from Texas, I can’t introduce myself in five minutes.
I asked for 30 or 40 minutes for my comments. (Laughter.) I’m going
to parse this down, but it will be complete in the hard copy and a CD for
you guys.
My name is Tom Curb, I’ve been a resident pharmacist for 41 years
with more than 38 dedicated aspects of managed care pharmacy benefits related
to hospitals, HMOs, PBMs, retail pharmacy networks, development of prescription
claims processing, pharmaceuticals purchasing and as an independent consultant
on matters pharmaceutical.
My background and experience qualify me to allow me to make the following
comments and observations. The challenge before this commission is to assess
the potential for a cost effective and safe system for the importation of
Canadian prescription drugs.
I will describe such an importation program with documented cost-effectiveness
and patient safety. First, necessary elements must be defined and addressed.
Lowered drug cost is a given; informed Americans know they can obtain cheaper
drugs from outside the United States. The effectiveness and safety, appropriate
therapeutic response and patient safety demand two primary considerations:
product efficacy and real-time electronic safeguards; the former being affected
by accountability of source, and the latter by applications of proven, technological
edits.
Product efficacy. Dire government and industry predictions about unsafe
or substandard drugs from licensed Canadian pharmacies have proved invalid.
Documentation of more than 38,000 Canadian source prescriptions subjected
to the below-described safeguards reveal that there were no reports of counterfeit
drugs, substandard drugs, or adverse drug events. These statistics are especially
important because the majority of patients had affiliated medical benefit
programs and thus were subject to consistent and routine physician oversight.
Real-time electronic safeguards. Although there is no validated evidence
of product-related death or injury to Americans importing drugs from licensed
Canadian pharmacies, tens of thousands of patients obtaining drugs from within
the U.S. system die or are seriously injured from adverse drug events. To
help prevent these, U.S. pharmacists are required to maintain patient profiles
with their drug utilization histories that interface real-time with technologies
that identify potential medication-related problems. Also, prescription benefits
managers, or PBMs, require claims processors to maintain a central profile
of each member’s drug utilization within the provider network, and for
the profile to be linked to similar patient-protective technologies.
The primary purpose for these patient-protective technologies is the prevention
of adverse drugs events caused by drug-to-drug interactions. An essential
deterrent for which is a comprehensive patient profile. Obviously, even within
the internal U.S. system, applications of these patient-protective measures
are not universal. Many Americans do not consistently trade at one pharmacy,
and an out-of-network situation will occur if a customer obtains a prescription
from a non-technologically linked pharmacy, or if a prescription is not submitted
to a PBM claims processor.
An out- of-network prescription permanently contaminates the patient’s
profile with respect to that medication and all subsequent medications. Without
appropriate technological monitoring, imported prescriptions will also meet
this out-of-network criteria. Increasing public awareness of cheaper foreign
drugs, and ease of acquisition via the Internet, cause perceptive health care
providers to recognize an imminent danger to their members’ health from
potential out-of-network prescriptions.
To alleviate risks due to omission of data about imported drugs from members’
drug history, and in an effort to fulfill their obligations to protect members’
health (and in many cases the plan’s resources), proactive benefits
plans took preemptive actions to incorporate proven protective measures into
benefit’s designs. Also, recognizing the danger from data omission in
customers’ drug profiles, visionary retail pharmacist retailers have
tried to fill that obvious void. Facing the increasing threat of reduced revenues,
they offered to supplement their in-house patient profiles with imported drug
data, to inform their importing customers or safer mechanisms, to advise them
of the relative cost of domestic versus imported medications and to answer
customers’ questions about the products that they may choose to import.
I emphasize this technological aspect of a safe mechanism because some regulators
seem to misunderstand the process or they underestimate its importance. Despite
the irrefutable need for these universally acclaimed and professionally endorsed
safeguards -- and ignoring evidence that the lack thereof is a much greater
threat to citizens than unsupported, product-related concerns --- the federal
government, in concert with state officials and regulatory agencies, is attempting
to prevent application of these safety measures to imported prescriptions.
Hopefully, theirs is just not another effort to placate a narrow but influential
constituency. For, by discounting the necessity of such measures, regulators
will create a preventable and yet grave and imminent danger to American consumers.
If regulators do not ensure to these safeguards, they will have abandoned
their mission to protect Americans’ health and, instead, create a deadly
environment that is diametrically opposed to the safer one of application
of universally endorsed and proven health care technologies.
Carmona – Mr. Curb, would you please sum up now?
Curb -- Yeah. Under the safe and cost effective mechanism, licensed Canadian
pharmacies would be certified or subject to an acceptable professional criteria.
In the absence of this reciprocity and our dual licensure, Canadian prescribers
would be credentialed based on accepted, professional criteria that would
include review of requirements. U.S. prescription benefits plans, and all
other PBMs, would be allowed to coordinate with credentialed Canadian pharmacies
to obtain medical and drug data that have been supplied to them by their importing
members, and to electronically processed Canadian prescription claims for
these members. U.S. retail pharmacy would be allowed and encouraged to establish
cooperative relationships with Canadian pharmacies and/or U.S. PBMs that would
enable them to become involved in their customers importation processes. The
technologies, safeguards and processes that could accomplish these programs
have been developed, prototypes can be demonstrated and positive results validated.
For those 38,000 prescriptions that were mentioned earlier, the Canadian savings
were in excess of $6 million, when compared to already-reduced prices in the
U.S. pharmacy network – an average saving of $150 per prescription,
more than 50 percent. I have answers to all of your specific questions, but
I guess you’ll have to get them off of the CD.
Carmona – We’ll certainly look at your record that you’ve
provided to us. I appreciate it. Task force members, anyone have any questions
for Mr. Curb? Thank you, sir, for your testimony. Appreciate it. Our next
speaker is Peter Neupert of drugstore.com. Mr. Neupert.
Peter Neupert, drugstore.com
Good morning, and thank you for the opportunity to speak today. I’m
Peter Neupert, Chairman of Drugstore.Com, a leading online of health, beauty,
vision, and pharmacy products. We were one of the first fully licensed online
pharmacies, back in 1999.
The Internet has empowered consumers to comparison shop for their prescriptions.
For example, Drugstore.com was the first to make all of our prescription drug
prices available online to any consumer. Because we believe that empowerment
is a positive thing. However, it is the same medium, the Internet, that has
made it so easy for unscrupulous, unregulated and untouchable entrepreneurs
to put U.S. consumers at real risk for their health.
Since 1999, our safety and privacy claims have been substantiated by a thorough
audit, conducted by a trusted, independent organization – the NABP,
the National Association of Boards of Pharmacies. Trusted verification is
especially important on the Internet, because the consumer does not have the
visual cues available in the physical word; things like which neighborhood
it’s in, the cleanliness of the site, the licenses, the orderliness
and the like.
As cross-border importation of prescription drugs becomes more popular and
widespread, the problems will only get worse, exponentially. This is the nature
of the Internet; trends accelerate at a breakneck pace. Consumer demand will
create supply, while more marginal players that exist will set up shop to
tap into the bigger and more lucrative markets. Many problems that exist with
the current laisse faire approach to cross-border importation will
increase, from therapeutic failures to life-threatening events; all will be
exacerbated. An uncontrolled free-for-all, without mandatory certification
and enforcement, can never claim to put patients’ interest first.
By harnessing the Internet, we believe that Drugstore.com is onto something
quite important and possibly revolutionary. Today, we have safely dispensed
more than 2.5 million prescriptions to consumers in all 50 states. We leverage
the power of the Internet volume to offer discounts of 10-25 percent off prices
of traditional brick and mortar pharmacies. Moreover, we are providing important
health information that can improve health outcomes, and we have an e-med
alert service that proactively goes out and alerts consumers when the FDA
has recalled a drug, or any other agency has recalled a drug -- which would
solve the problem noted by the first consumer this morning. And we do all
of this while conforming to applicable federal, state and local regulatory
controls. For the safety of consumers and the viability of the Internet as
a lower cost drug delivery channel, it is critical that all Internet pharmacies
– whether here or outside the United States -- play by the same rules.
Without appropriate standards and enforcement mechanisms in place, opening
our borders undermines the confidence in the safety and reliability –
and affordability – of the Internet distribution channel. Health Canada,
for example, does not regulate pharmacies catering to U.S. citizens.
A spot check on the popular search engine, Google, identified over 250 websites
that dispense drugs. Over 25% of those are outside the U.S. or Canada, and
those are only the ones that we could identify. Over 167 of those 250 provide
medications without a prior prescription, and over 40 more without a prescription
at all. Many dispense compounds that are illegal, or subject to special controls.
The average consumer cannot say, with certainty or any degree of confidence,
which sites are safe and which are not. Right now, the situation is “buyer
beware.”
(Displays TropicRx site.) Here’s a site that I got in my email two
days ago. I venture to say that we’ve all received such things. This
one is particularly interesting because of all of the various things going
on. I would venture to say this site is not FDA-approved, although it says
it is, although the [FDA] logo is there. This site undermines the doctor-patient
relationship and patient safety by requiring no prescriptions. It showcases
the U.S. flag, but gives a Canadian address. There are thousands more suspicious
sites like this.
So, what do we do? I recommend that we adopt the uniform standards, similar
to the NABP – VIPS program. Once such a uniform standard has been adopted
and introduced, I recommend the following three-tiered approach to help enforce
that standard.
One: make it illegal for on-line pharmacies to advertise on search
engines, unless they meet the approved certification standards and
prohibit search engines from accepting advertisements from on-line
pharmacies that are not properly certified. Two: stop credit card
payments to pharmacies that do not meet the certification
standards, and stop the funding at the source. And, third, motivate
third party shippers to refuse shipments from pharmacies that do
not meet the certification standards.
Buying drugs online should be a superior experience: convenient,
affordable and private. But in today’s world, purchasing
drugs on-line is fraught with peril. I see the red light is on. I
would say that all Americans deserve a system they can trust, this
means finding a solution that combines safety with affordability.
We deserve to be protected from fly-by-night operations and
unscrupulous providers that set aside all safety concerns to make a
buck.
Carmona – Thank you, sir. Task force members, Dr. Raub?
Raub – You mentioned mechanisms to reach out to customers in
the event of, say, a recall of a product or, by extension, the
discovery of a containment product. Would you elaborate on what
that mechanism is?
Neupert -- We harness the low-cost, two-way communications of the
Internet. We keep a database of our customer name and every drug
they received, even by lot number. So, if we get a recall, we
monitor the FDA website. If we get a recall, within less than 24
hours, we send an email to each customer who has received anything
from that lot number or from that drug. We also do it for non-drug
products, you know, we sell baby products and things like that. If
they get recalled, we also send notices to those customers. We sent
over 30,000 when, I can’t ever say it, when phenyl propylene
was taken off from market for some reason, we send out over 38,000
emails to customers within 24 hours.
Alex Axar, HHS general counsel – Mr. Neupert, have you all
done any kind of comparison of prices available through your
website versus the prices that would be available through websites
that offer drugs for importation? And, by that, I mean particularly
brands and generic drugs, how they compare.
Neupert – Absolutely. Typically, on generic drugs,
we’re cheaper than foreign sources, because there’s a
much more robust generic drug market here in the U.S. On brand
drugs, my favorite example is that we typically sell Lipitor for
$73; probably the traditional retail price is in the mid-80s. Our
foreign competition from Canada sells it typically for $32.
Axar – And what would you say are the major safety concerns?
Since the way Drugstore.com is, if I understand your testimony, it
operates, you work solely with FDA-licensed and approved drugs and
distribution channels. What is your perspective of what the major
risks would be with imported drugs, where are the points in
manufacture, distribution, where in that chain where you would have
the greatest safety concerns?
Neupert – Well, I think that the major risk is that consumers
don’t know who they are going to be doing business with.
That, if you really think of mass scale importation, it’s
going to happen largely on the Internet. There’s no physical
way to make it happen from a consumer perspective, and when
you’re doing business on the Internet, you don’t know
-- unless there’s some uniform, certification standard
– if that person is in Canada, even if you think they are in
Canada, you have no way to credential them. And there’s no
remedy, if it’s not what you think it is, there’s no
way for any U.S. authority to go out and deal with it. In terms of
the drug supply, if you could have some sort of regulated system,
certainly drugs manufactured in other parts of the world are as of
good a quality (if FDA-approved) as if manufactured here. I think
the issue is, how do you have a controlled system once you leave
the border? We have a controlled system, because it’s the
only way we can ensure the end results. Once you leave the borders,
how do you end up with a controlled system? That, I think, is the
ultimate challenge.
Axar -- Thank you.
Carmona – Dr. Crawford.
Crawford – You’ve basically called for a regulatory system geared
towards policing the Internet pharmacies; do you see a role for the states
in the U.S., as well as the federal government, or by the very nature of Internet
pharmacies is it only the federal government that should be involved?
Neupert -- In 1999 and 2000, I testified in front of Congress on this very
issue. States of course, currently certify pharmacies. We preferred voluntary
regulations at the time, we didn’t see a particular role for federal
government at that time. I’d have to say that my experience since 1999
suggests that that was probably the wrong approach. That certainly, there
is a role for states, but the issues about enforcement, about location, about
how do you solve all that. I think the Internet has changed the rules. Bottom
line, and that you need some national, federal, specific certification capability
with enforcement behind that. And that… it’s not just a problem
outside the U.S., but inside it as well. Of the 250, the over 40 that sell
drugs without a prescriptions – hydrocodine, OxyContin, Vicodin, all
that stuff – many of those are inside the U.S. And, so I think that
the Internet drug distribution issue is a big issue both internal and external.
Jayson Ahern, assistant commissioner in the Office of Field Operations,
US Customs and Border Protection, Department of Homeland Security –
Actually, Dr. Crawford asked part of the question, but I was going to ask
if you could elaborate a little bit more on your three-step process for certification
of online pharmacies, particularly on the importation aspect?
Neupert – What we have been focused on is how do you control something
that has been, in effect, the Wild Wild West so far. And, try to do it in
a way that enables innovation and takes advantage of the low-cost Internet
business model while still providing consumers with some confidence? So, we
start by sating you have to have some sort of national certification system
that can be secure. When we designed VIPPS with the NAPB, we had to make sure
the shield – the certification -- couldn’t be stolen by any entrepreneur
and put up on their site just like a fake state license could be. So it has
to be a secure certification, which means that the link is controlled by a
single person and that you get, through this certification process whatever
set of standards you want, but then it’s controlled by a central server.
So, that’s step one. Once, then, you have a definition of a what a good
pharmacy is, what a legitimate pharmacy is, then you can call the “arms
dealers to the Internet’s ecommerce companies” and say, “You
can only do business with the good guys.” It’s unfair today to
tell Fed Ex or UPS that you shouldn’t be accepting all of these packages
coming into the U.S. They can’t tell who the good guys are from the
bad guys. Visa, MasterCard and the payment systems can’t tell good guys
from bad guys. But once you have a certification standard, one that defines
here are the good guys, then you can tell the search engines, the payment
systems and the delivery systems that they can only do business with good
guys. And I think that is a potential way to control 90-95 percent of the
problems – the no prescription issues, and the importation issues. And
that would work even if you want to make, to enable someone outside the U.S.
to do it, if they had the same set of rules. And that’s the only system
that I’ve been able to think of, in five years, that would be able to
accomplish it.
Raub – Mr. Neupert, on your slide that you put up, it looks like some
of the products that you have on that slide are pain control products. And,
you mentioned some other pain control medications, some of which are controlled
substances. You also talked about a survey that you did in which you characterized,
you know, 167 of 250 sites as not requiring a prescription. Can you tell us
what you are seeing from your evaluation, from your expert evaluation of the
Internet, in terms of the types of products that people are trying to get
to order? Is it a lot of controlled substances and other products?
Neupert – Absolutely. Go do a search of Vicodin at Google. You’ll
see over 50 different websites that will sell you Vicodin without a prior
prescription. Deliver it overnight, to your door. It used to be, when I started
in 1999, it was all about Viagra; then it was about Zenecal, then it was about
some other things. It’s very quickly accelerated, in the last year,
to OxyContin and Vicodin.
Raub – Can you elaborate about why that is, when a consumer has the
alternative to go to a pharmacist or an on-line pharmacy, or a non-VIPPS on-line
pharmacy?
Neupert – Well, our number one drug at drugstore.com is Propecia,
because we’re low cost and it’s a cash drug; no benefits, in general.
Our second big one is Lipitor, which would be traditional with other pharmacies.
The reason that you have so many illegitimate pharmacies pushing controlled
substances is that people want them. Bottom line is, they don’t want
to go to a doctor to get a prescription, and they want to be able to self-
medicate and the Internet’s a good way to self-medicate and it’s
more convenient than trying to find a street corner.
Willis – In regard to the controlled substances, do you find that
the majority of them offered over the Internet are coming from domestic sites
or from foreign pharmacy sites?
Neupert – It’s difficult to tell exactly where they are coming
from. Many of the sites will hide their contact information. I spent a couple
hours trying to figure it out: called the 800-number, wouldn’t identify
what site it was. You couldn’t figure it out, you go to the domain registration,
couldn’t figure it out because they use some third party registration.
I’d say it’s about 50-50 right now. I’d say the problem
is probably bigger inside the U.S., because, frankly, there is very little
enforcement because it’s hard to find.
Willis – As a follow up, and you’ve answered part of that, how
is a consumer to know exactly where the drugs are coming from? While this
advertisement has the American flag and has a street address in Canada, is
there any assurance that the drugs are actually coming from Canada, for the
consumer?
Neupert -- Without some certification system, there’s no assurance.
I mean, I’m a professional and I’ve had engineers try to figure
it out. There is no assurance. And that’s why I think you have to have
some form of certification, both for the benefit of U.S. citizens using U.S.
pharmacies, and for anyone who might try to take advantage of lower prices
outside the U.S.
Elizabeth Duke, PhD, administrator of HHS’ Health Resources Administration
Services – You’ve several times said, “some form of certification”.
Do you have a picture in your mind of what that certification system would
look like and what it would take – you’ve identified it as a federal
responsibility – what it would take for us to produce such a thing?
Neupert – I think that the work that we did with the NAPB, building
the VIPPS – the Verified Internet Pharmacy Site -- is a good model.
There may be some additional things that people want to layer onto it. It’s
basically what, the similar types of things you go through to get licensed
as a mail-order pharmacy. And what this goes as an extra step is an on-going,
regular audit to make sure you’re up-to-date, and you make certain agreements
to follow all the rules from HIPPAA on through whatever the state- of-the-art
is with regards to pharmacy practices at the time. We just went through our
second audit, in November/December of this prior year. They spent two days
at our site, visited our facilities, made sure our pharmacists were properly
doing the right thing, looked at our exception reporting, looked at all kinds
of stuff. It’s that kind of thing. There are, today, 13 VIPPS-certified
pharmacies, largely because it’s voluntary. But, when you think about
the work that has to get done to regulate the 50,000 pharmacies in the U.S.,
I don’t think it’s more work than is already happening. It just
has to get transferred from the people who are doing it today to some other
agency in a way that has this secure capability that the VIPPS situation does,
on-line.
Duke -- Thank you
Carmona -- Dr. McClellan.
Mark McClellan, PhD, incoming Administrator for HHS’
Center for Medicare and Medicaid Services -- Would this require
international participation to conduct the inspections abroad, to
monitor the drug supplies abroad and that sort of thing? I’m
just trying to understand what additional authorities in the U.S.,
but perhaps also …
Neupert – I understand your questions, and I’m
not here proposing that we accept drugs from overseas. I think this
would be a good step for the U.S., to improve its U.S. system.
Should the Commission, in its wisdom, say we want to do it outside
the U.S., and we want to enable Canada, then yes -- those
pharmacies should have the same rules that we have here in the U.S.
And that would require that whoever the authorities are –
whether they’re provincial or federal in Canada -- accept the
same sort of standards and the same sort of oversight that a U.S.
pharmacy does. The next point, that I didn’t mention is that
there needs to be some sort of a consumer awareness campaign; that
there is good guys and not good guys. And that is one thing that
has never been funded, that the VIPPS program never got off the
ground, frankly, because as the Internet bubble burst, we
couldn’t afford it.
Carmona – Ms. Hardin.
Tracy Hardin, Department of Justice – If importation was allowed,
is this something you would use? Would you use Canadian drugs in your business
to pass along greater savings to the consumer, or is this something you would
not want to be involved in it?
Neupert – I’ve always, in participating in this
debate over the last few months, I’ve thought it was a
mistake to have consumers try to figure out how to import products
from around the world. That, it would make much more sense, if you
wanted to allow importation, that you would have commercial
importation fit into all of the controls and safeguards of the U.S.
system. As the prior speaker mentioned, the DUR, the patient
profile, all of the sort of linked in networked claims, these
issues that happen, could occur if you allowed commercial
importation. As opposed to expecting consumers to try to figure out
who the good guys are and who the bad guys are throughout the
world. And the one issue that I’d like to mention in that
regard is, if you empower consumers, and encourage them to go
off-shore to go shopping, I don’t think that there’s
any way to control it. To think that it’s just going to stop
in Canada is just naïve. People are shopping around the world,
and there’re going to go to where the lowest prices are,
because, hey, if it’s safe to get drugs from Canada, why
isn’t it safe from New Zealand? Why isn’t it safe from
Thailand? And they’re not going to be able to tell the
difference. And if two million people have done it so far, and
everyone’s telling their friends, or ten friends, how they
saved $100 a month, there’s going to be four million people
this year and ten million people next year. This is going to go
like this, because it already has from a very small base.
Carmona – Any more questions? Mr. Neupert, thank you so
much for providing this information, particularly your comments on
informing the consumer, which has been a challenge for us. Because,
in our first meeting, I spoke about the aspects of health literacy,
that is consumer awareness. And, you know, to the average person,
looking at a website like this, you feel very secure. As you said,
you see the American flag, you see “FDA”, and yet
there’s a whole sinister operation below that, that has
nothing to do with safety or efficacy. And we keep seeing more and
more of that, yet the American public has this false sense of
security by seeing their flag and seeing FDA and so on. And we are
struggling with how to breach that gap and instill that body of
knowledge into the American public so they will understand and
recognize that there is a risk. Thank you very much for bringing it
to our attention. Next speaker is Kurt Hilzinger, from HDMA.
Kurt Hilzinger, HDMA
Morning, Mr. Chairman and members of the task force, and
thank you for allowing me to participate in today’s important
meeting. My name is Kurt Hilzinger, I am President and Chief
Operating Officer of AmerisourceBergen Corporation. However, I am
here today in my role as a member of the Board and Executive
Committee of the Healthcare Distribution and Management
Association.
HDMA is a national trade association representing
full-service distribution companies responsible for ensuring that
billions of units of medication are safely distributed to tens of
thousands of retail pharmacies, hospitals, nursing homes, clinics,
and other provider sites across the United States.
In our presentation last week to the Industry Roundtable,
convened by this task force, HDMA stressed that assuring patient
safety is of paramount importance when considering the feasibility
of importation. With this in mind, we focused on the top three
safety issues we believe must be addressed: product authentication,
product liability, and product availability. Each offer significant
challenges that cannot be overemphasized.
While these remain at the top of our list, I would like to
turn today to two additional safety issues HDMA believes are
critical for the task force to consider. Specifically, these are
recalls and repackaging and re-labeling.
I’ll start with recalls. One of the key safety features
incorporated into U.S. policies and regulations is the current FDA
managed system for “recalls.” Systems are in place
today to facilitate domestic recalls that are initiated by the
manufacturer and processed by wholesalers and pharmacies. When
dealing with foreign imports, it will be critical to ensure that
the FDA has the authority and resources to apply the same level of
oversight to international product recalls as they have to domestic
product recalls. Foreign manufacturers should be held to the same
standards for evaluating when a product should be recalled as is
currently done in the U.S.
This leads to a number of questions, such as: Who will have
responsibility for initiating, regulating, and monitoring
international recalls? Will FDA have the jurisdiction and oversight
over a foreign firm’s recall plan? How will post-marketing
complaints and adverse event reports be gathered and assessed? What
will happen if foreign originated product is recalled but its
domestic counterpart is not: will this require wholesalers and
pharmacies to maintain separate inventories? If so, this implies a
whole new set of procedures and costs that should be factored into
your study.
Next is the issue of repackaging and relabeling. Imported
products may have to be repackaged to met FDA specifications. This,
in turn, means they should also have to be assigned a new National
Drug Code or NDC. This number is used throughout the U.S. health
care system to identify products in support of such wide-ranging
activities as product ordering, drug recalls, and reimbursement of
pharmacies under public and private sector insurance programs. The
imported drugs may also have to be bar-coded to meet the newly
promulgated regulations and to enhance distribution efficacies.
They also should be marked as to the country of production and be
accompanied by patient package inserts that meet FDA-approved
language requirements. All of these steps are critical, but they
will result in additional time in getting drugs to the patient and
have costs associated with them that will need to be factored. In.
If a decision to move forward with importation is made,
patient safety must be the paramount consideration. Wholesalers are
best positioned to help maintain the safety and security of the
national drug supply. However, importing product from foreign
sources introduces significant challenges and must be addressed to
ensure the broad safety of imported products while maintaining the
desired cost benefits for consumers. Before the green light is
given to importation, the three safety issues HDMA outlined last
week – product authorization, integrity and availability
– as well as the ones we raised today – processing
recalls and repackaging and re-labeling – should be
thoroughly evaluated by this task force. There are still other
important issues that remain to be addressed and discussed for your
evaluation, but we will cover those in extended remarks that we
will submit to this task force by June 1.
Thank you again for allowing me the time to speak today. I would be happy
now to take any questions.
Carmona – Thank you. Any questions from the task force? Mr. Azar.
Amit Sachdev, acting FDA deputy commissioner for policy – Mr.
Hilzinger, I’m not sure if you were here earlier and got to
hear Mr. Roberts’ testimony about the counterfeit drugs that
he received from a CVS store in his neighborhood?
Hilzinger -- I did hear it.
Sachdev – Could you explain, from the distributor’s
perspective, what you might know about how – how could
something like that happen in the distribution system. How could
someone end up going to a CVS that’s here in America and
receiving a drug that’s counterfeit, multiple counterfeit
drugs? It sounds like different drugs that he had purchased ended
up being counterfeit. How can that happen?
Hilzinger – Well, there are a lot of ways that it can happen.
As a primary way it can happen, we, today, take returns from our
pharmacy customers in part for product recalls – which
obviously go back to the manufacturer and their FDA guidelines
– but we take returns for good product, for in-date product.
We would like to believe that our pharmacy customers today buy all
of their pharmaceutical products solely from us, but pharmas today
are under tremendous pressure in their own businesses. They do
procure product from other sources; sometimes that product is, in
fact, counterfeit and when we take a return back from a customer,
it is very difficult for us to tell – virtually impossible
for us to tell -- if it is counterfeit or authentic. As witnessed
by the product packaging today. So, we have… we can…
We do a superb job of controlling product from the manufacturer
down to our pharmacy, but there is a reverse distribution function
that we perform as well. And our pharmacies will buy product from
other sources than ourselves. There is also an issue, obviously,
with the number of distributors that have been licensed in this
country. Florida was an extreme example, with over thousands of
wholesalers licensed at the state level. And I think, you know,
additional regulations need to be put into place to control the
number of licensed wholesalers who are approved at the state level.
Carmona – Other questions, Dr. Raub.
Raub – You had mentioned the prospect of increased costs for
the wholesaler with respect to the recalls and the repackaging and
the relabeling. Could that be of a magnitude that would virtually
wipe out the theoretical savings of importation?
Hilzinger -- Theoretically yes. I think we would need to know, you
know, what the model is that would be contemplated by the task
force. How broadly importation would be allowed in the U.S. If
there are multiple sources around the world from whom product could
be welcomed in to the United States, then it could be significant
costs to repackage and relabel the product to make sure it’s
safe for U.S. consumers.
Raub – Of course, as one of earlier presenters testified this
morning, the longer the chain or, by extension, the more complex
the web, the potentially greater costs for you.
Hilzinger – I would agree with that. I think the task force
should be assured that there will significant additional costs to
reimport product and repackage it to make sure that it’s
safe.
Raub – Thank you.
Hilzinger – Yup.
Carmona -- Other questions from task force members? Ms. Hardin.
Hardin– I was just wondering if you could give a brief
description of what liability issues distributors face in
situations like the one Mr. Roberts described with counterfeit
drugs in the distribution chain, and if you’ve given any
thought to how that issue might change if importation was allowed?
Hilzinger – Well, we’ve not… in a world where
importation was not allowed, we’ve really not thought about
our liability until we know what kind of model will be approved by
the task force and the government. Clearly, we feel that, you know,
we have a moral and ethical responsibility to safeguard the supply
chain as best we physically can today. We do have, we have been
asked to participate, we’ve been part of the lawsuits, have
been named in some of the lawsuits for situations like that. And
obviously, we have our own views as to what we can control and what
we can’t control and we’ll have to defend ourselves
accordingly. Historically, wholesalers and distributors have been
indemnified by manufacturers for most of our liability in the
marketplace. We provide a logistics and distribution function for
our manufacturing partner, that’s our primary role.
Carmona – Other comments? Mr. Azar.
Azar -- We’ve heard testimony from others that for
importation of prescription drugs, that you can import dugs that
are FDA-approved drugs that meet FDA specifications. Your testimony
appears to support that type of implication if we go in that
direction. But, others have suggested that you could import drugs
that are FDA-equivalent or like FDA-approved drugs. Do you have a
sense of how, of how much more difficult, how that would compare to
FDA-approved importation?
Hilzinger – You know, you’re out of my area of
expertise. The industry association is very comfortable with a
closed system, where if we were to have an importing situation in
this country, it would come from an FDA-approved manufacturing
site, to an FDA-approved importer and then obviously down to
pharmacy. When you’re dealing with FDA-equivalent products,
today I would tell you that our systems and our technologies are
not set up that we could determine the difference between an
FDA-equivalent and an FDA-approved. Now, unless of course there was
ID tagging of some sort and we could get very specific
identification of the source of that product.
Carmona – Other questions? No. Thank you sir, appreciate it.
Our next speaker will be Governor Doyle, the Governor of Wisconsin.
Welcome Governor, thank you for taking the time to be with us.
The Honorable Jim Doyle, Governor of Wisconsin
Thank you again Mr. Surgeon General and members of the task force.
I appreciate your giving me -- and other members of the public
– the opportunity to come and speak about an issue that is so
important, and certainly one that – as Governor of the state
of Wisconsin – I hear about daily from citizens from our
state. Citizens who really are struggling, as you well know, truly
struggling to afford the costs of basic medical care.
There is no doubt that medical science has yielded enormous
discoveries that have extended and improved the quality of our
lives. But, it is equally true that the skyrocketing cost of
prescription drugs threatens to deny many of our citizens in
Wisconsin and across this country with access to these lifesaving
cures.
Like most Americans, like most people in Wisconsin, we are
disappointed that the federal government has not done more to
address this dramatic inflation, or to provide meaningful
prescription drug coverage to those who need it most. And we
appreciate the work of this task force in looking into this very
important issue, and hope that the result is going to be one that
truly provides some relief to the citizens of our state.
As I have often said, there is one thing the federal government
could do tomorrow that would make prescription drugs more
affordable for every American, and that’s to allow the safe
reimportation of U.S.-made and –approved prescriptions from
Canada.
Every day, I meet citizens of Wisconsin who struggle with the high
cost of these drug, and are often forced to make the inhumane and
unbearable choices between food and medicine, or skipping a dose
here or there. I know you are hearing testimony from citizens who
are in that predicament and I know that you have all heard those
stories about people who are making those difficult decisions.
But just across the border, Canadians can walk into their corner
drug store and buy prescriptions for a fraction of what we pay.
These are the same medications available here, but may be as much
as twice or even more for Wisconsin consumers.
Wisconsin has acted and we have been forced to take a lead. In
February, in response to overwhelming demand from the people of
Wisconsin, we launched a website which is on the screen – www.drugsavings.wi.gov --
this site empowers our citizens to order these lower-price
prescription drugs from pharmacies that our state has visited and
has found to be safe, reputable, and reliable. For example, just
one of the most common pain relievers, Celebrex, the state of
Wisconsin for hundred doses, as the state, with the discounts that
we receive, we pays $106.71, but through our website, an individual
can purchase the same drugs for $72, a savings of 58 percent.
The response to our website has been remarkable and I hope should
provide some measure to you of what the demand is out there among
American citizens. Over the last six weeks, we have had 87,000
visitors to the website, an average of 2,000 visitors a day trying
to find help with affordable drugs. And here are some of the
stories they have shared with me.
Connie sent an email to tell me that the only way she and her
husband can afford the drugs he depends on is to buy them from
Canada, since there are no generic substitutes.
Cari is 48 years old, disabled and has no prescription drug
coverage. She hopes that the website will help her with the costs
of the nine prescription drugs that she takes.
Clare wrote to tell us that her husband is a transplant patient and
his anti-rejection medication costs $1,000 to $1,300 per month,
depending on the pharmacy used. Her husband is 65 years old and
still working, and she wonders how anyone except the wealthy can
afford this medication.
Mary from Brookfield says that she has been ordering drugs from
Canada for over a year for herself and her husband. They are senior
citizens, they take multiple medications and just can’t
afford the high prices.
The emails come to me from Wisoncon and around the country make one
thing very clear to me, and I’m sure that it’s clear to
this panel -- people are going to Canada. Whether we like it or
not, people are going to Canada. They are going in bigger and
bigger numbers, because the simple dollars demand it and it is the
only option that many of them have. We have, we hear from people
not only from Wisconsin but from all over the country, writing the
same thing, emailing through the website, saying, telling us that
in many cases they have been going to Canada for a year and a half.
They appreciate the fact that some body has checked the pharmacies
out and has negotiated some prices and that they can deal with
those pharmacies.
Now, I can understand that the pharmaceutical companies don’t
want us buying safe prescription drugs from Canada, because it cuts
into profits. But I really hope that the federal government gets on
our side, trying to help the citizens of Wisconsin.
This Administration has the authority – right now – to
allow the safe reimportation of U.S.-made and –approved
prescription drugs from Canada. And I hope that this task force
will recommend that the Administration use its authority to do just
that.
The drug companies have waged an expensive, highly coordinated
scare campaign to try to convince people that buying from Canada is
unsafe. But do any of us really believe that the Canadian health
system is more dangerous than our own? If we were in Canada, and
got sick, would any of us really think twice about going to a
Canadian hospital or a Canadian pharmacy for prescription drugs?
If the FDA has concerns about the safety of these drugs, then I
would encourage the FDA to do what our state has done. Put some
inspectors on a plane, send them to Canada, and check out these
pharmacies for yourself. You will find what we would find, that the
ones on our website are reputable, long-standing, highly regulated
pharmacies in whom we can have confidence.
It’s time, I believe, for the federal and state governments
to stand together on this issue, not do the bidding of the drug
lobby, but stand up for the people of our states and implement a
safe system of prescription drug reimportation. I have found it
amazing in these recent months that the FDA has time to send out
press releases attacking out website, it has had time to send staff
to Wisconsin to hold press conferences criticizing our efforts, but
not to actually work with us to put this system into place. It is a
story of missed opportunities and misplaced priorities, and it is a
disservice to the people of this country.
One thing is clear: someone has to stand up to deal with the
incredible soaring prices of pharmaceutical drugs. And somebody in
this task force is in the position to do it, to say that we are
going to look out for the people of the United States, the people
of the state of Wisconsin. U.S. drug manufacturers have threatened
to blacklist Canadian pharmacies and cause shortages in Canada if
they move ahead with reimportation. I have asked Attorney General
Ashcroft to investigate these companies for violations of
anti-trust laws.
But, unfortunately, no action has been taken. And, unless some
action is taken, the 25 largest on-line Canadian pharmacies have
said that they may not be able to do business with citizens of
Wisconsin or any other state.
Even more recently, we have heard that several merchant credit card
payment processors have been scared off from providing their
e-commerce credit card services to Canadian mail order pharmacies.
Three weeks ago, Visa and MasterCard announced that they will not
service Canadian mail order pharmacies because they have been under
pressure from the FDA to cease their support of the payment
processing. They cited pressure from the FDA and have warned their
member financial institutions to avoid so-called
“illegal” transactions.
The simple fact is this: people in Wisconsin – and all over
America – need relief from the high price of prescriptions
drugs. Reimportation holds the promise of significantly lower
prices, and expanding access to life-saving medicines. It’s
time for the federal government to stand with us against to move
past the scare campaigns and heavy handed tactics, and to start
being on our side in making prescription drugs affordable for all
Americans.
Not only does the federal approval of prescription drug
reimportation holds the potential for huge savings for citizens, it
has huge savings for Wisconsin taxpayers. Our state spends more
than $700 million annually on prescription drugs for Medicaid
recipients, employees, inmates and others in our state
institutions. If we could just save a fraction of that amount by
purchasing drugs from Canada with federal approval, it would mean
savings to the taxpayers of our state in the tens of millions of
dollars.
Again, I truly thank the task force for your attention to this
matter. As I said earlier, this is happening. No matter what I do,
as the Governor of a state, no matter what you do, as the task
force, people -- particularly in the Northern states and I assume
this is happening all over the country, but particularly in the
Northern tier states – are going to Canada. And they are
going to Canada in increasingly large numbers and nothing is going
to stop that, given the price differential. It is going to happen,
it is going to happen in greater and greater and greater numbers.
And I am proud of the fact that we in Wisconsin have taken some
steps to protect our people.
We have checked out the pharmacies that are on our website, and I
feel confidant that if the FDA goes to those pharmacies, you will
come away fully satisfied with the safety of the prescription drugs
that come from those pharmacies. They are exactly the same drugs
that people are buying at pharmacies in Wisconsin at prices that
are 30, 40, 50 and 60 percent higher than what they can purchase
through Canada.
So, again, I thank you very much for your attention to this. I look
forward to the findings of this task force. I hope that you are
going to help work with us to provide some relief for the taxpayers
of the state of Wisconsin. Thank you very much.
Carmona – Thank you, Governor. Governor, would you have a
moment to answer some questions from the task force?
Doyle – Yes.
Carmona – Dr. Crawford.
Crawford – Thank you, Governor. Taking into account that the
past two Secretaries of Health and Human Services – Secretary
Shalala and Secretary Thompson – have been unable to
guarantee or assure the safety of products coming in from Canada,
and none of us want something like this to be a permanent solution
to a permanent problem, what do you see as the long-term solution
to this? I mean, what you’re doing, and what other states are
contemplating, and some municipalities, may not, with all due
respect, get to the root cause. Could you enlighten us as to what
you see that as being?
Doyle – Well, I believe pretty much in the marketplace. I
believe that what we’re doing in Wisconsin and what I hope
that reimportation will do, is actually to bring competition in a
way such that the drug companies will have to start moving the
prices down in the U.S. I would strongly prefer an internal system
in which we are working not through a website but through Wisconsin
pharmacies, but one where there real, competition in place. And
world-wide competition. I mean, the fact is, if you believe the
drug companies -- and I think that given the amount of money being
spent on advertising it’s little hard to believe it, but if
you believe the drug companies -- we as American consumers are
footing the bill for all of the research going on, essentially, in
the world. And, I think what has to happen is that they have to see
that there is not a safe haven for just whatever profits they want
to make in the U.S. That’s what Canadian reimportation does.
It introduces real competition into the marketplace, and it’s
going to make the drug companies have to find a better structure of
pricing world-wide that will help American consumers. People in
Wisconsin shouldn’t have to pay for all the advertising and
all the research in the world. And that’s why I believe what
we are doing here is trying to introduce a level of competition
into the marketplace.
Carmona – Dr. Raub.
Raub – When your inspectors go on a visit with pharmacies in
Canada, is there an involvement with your counterpart provincial
officials or with Health Canada?
Doyle – The involvement; there was some contact, but
primarily this was our inspectors going right to the pharmacies and
making same kind of inspections of the pharmacy that they would of
a Wisconsin pharmacy.
Sachdev – Governor, I have a follow-up question. The witness
before you testified about concerns with regard to what would
happen in the event that there were adverse events that resulted
from purchasing drugs from a Canadian pharmacy where U.S. domestic
authorities don’t have regulatory authority. What is the
state in terms of its responsibility for that possibility?
Doyle – Well, obviously, this is where we’d like to
have the FDA involvement and a national agreement between the U.S.
and Canada. I mean, Wisconsin can’t do what the federal
government can do in the relationship with Canada. Our recourse
would be, and I don’t think this will happen, because I feel
quite confident with the pharmacies that we have chosen, but we
would take the pharmacy off the list. But we do not have…
again, this is why it is so important for the FDA to get involved
in this – the ability to have the government to government,
U.S.--Canadian government kind of arrangements that would help
ensure the effectiveness of system. But, I do believe, again, if
anyone went to look at the three pharmacies that are on our site,
that they would walk away from those pharmacies with any
significant concerns that they wouldn’t have with any
American pharmacy.
Sachdev – As a follow-up to Dr. Raub’s question, on
the comment you just made. So the, what you’re suggesting is
that, if there were a product that was purchased from a Canadian
site that was problematic in that there was an adverse event seen,
the state would investigate and take down the website. Would it do
so with the Wisconsin Board of Pharmacy? And, to what extend was
the Board of Pharmacies involved in assessing these Canadian sites?
Doyle – The Board of Pharmacy does not have jurisdiction,
obviously, over a Canadian site, would not have jurisdiction over
taking it down. They were not involved because they have no
jurisdiction in Wisconsin over a Canadian pharmacy.
Ahern – Governor, a couple of very quick questions about the
certification or the inspection on the three pharmacies in Canada.
First part is, how did you select those three for inspection by
your state officials? And, tow many did you actually consider and
why did you discount the others and just focus on the three that
were inspected?
Doyle – I can get you the exact numbers of how many we
considered. Part of this, I give due credit to the state of
Minnesota, which had done some of the preliminary work, and
obviously we were able to benefit from the work that they had done.
Still have a number of them soliciting us to get on the website, as
you can imagine. There are a variety of ways that these came to us
and, again, I’d be happy to provide the task force with that
information. And we have looked at a number of them, and did not
include every one we looked at in making the decision about what we
were going to put on the website. We may still add more to website
as well, further inspections are made.
Ahern – Were there any pharmacies that were either
contemplated for inspection that were dismissed because of
concerns, and was that posted, and would they be posted; kind of
“buyer beware” outreach?
Doyle – We would not post ones we had concerns about.
Carmona – Mr. Azar.
Azar – Governor, thank you for your testimony. As I
understand it, you had found that these pharmacies that you posted
on the website, that they are safe, reputable, and reliable. That
was your testimony, right? And that the consumer can buy the same
safe prescriptions that we have here in the U.S., also, is what you
have concluded?
Doyle – Well, in fact, the ones that we list, if anyone uses
the pricing on the website, are all named prescription drugs, that
are manufactured and approved in the U.S. We don’t have any
prescription drug on that list that is not a prescription, named
drug in the U.S.
Azar – And again, because we don’t know what your
inspectors did with these pharmacies, how do you all know that the
particular drugs were, in fact, manufactured in the U.S. as opposed
to manufactured elsewhere? The drugs that would be bought on these
Canadian pharmacies
Doyle – Our inspectors looked at the drug lots and so on, as
they went. I suppose people could have been hiding bad drugs in
back rooms, and so on. I mean, it’s the same thing that we do
in Wisconsin, and we rely on the representations that were made. We
also looked historically at these companies, these pharmacies, we
looked at what their history was, the extent to which the Canadian
and provincial governments in the state relied on them for their
various prescription drugs programs. I mean, all of those things
were looked at – these are good, reputable, long-standing
pharmacies in Canada.
Azar – So, the state of Wisconsin is very confident that
these drugs are safe for importation into the U.S. for people?
Like you, I’m a lawyer. So, I went to your website, and on
your website there is a disclaimer. And the disclaimer says that
the state of Wisconsin, as well as its officers and employees makes
no representation as to the legality of the importation, or
reimportation of pharmaceuticals from Canada. And it expressly
disclaims any and all liability for such importation or
reimportation or the use of any product so acquired. And then,
there’s a separate lengthy list of disclaimers: a disclaimer
of liability, a disclaimer of warranties and accuracy of data, a
disclaimer of endorsement, a disclaimer of for external lengths and
a disclaimer of duty to continue provision of data. I’m just
wondering, if the state of Wisconsin is encouraging people to buy
these drugs from these pharmacies, why there would be the need for
these types of disclaimers? Because it seems like your lawyers must
have decided that there is some significant litigation risk to the
state here, from people getting unsafe drugs, and that they needed
to put these disclaimers on there. I just wanted to get a sense
from you, of why there needs to be these types of disclaimers if
things are so safe.
Doyle – In the first place, we are not encouraging people to
buy drugs from this website or any other. What we have done is to
provide them with alternatives that they have been demanding in
Wisconsin. If they buy from this website, or using the prices on
the website from those pharmacies, they make the purchase
themselves. It’s a direct purchase from the consumer to the
pharmacy. And, we don’t assume any liability for purchases
that are made in Wisconsin pharmacies. The state does its best to
regulate that, as the FDA does. But, go to the FDA website and
count the number of disclaimers on the FDA website. This is…
we do not pretend be at the site of every drug purchase, making
every… looking at every single drug and testing every drug,
making sure it’s exactly what it is. What we have done on the
site is to say, these are three pharmacies we have visited, that
are reliable, reputable, long-standing pharmacies, and that these
are drugs that are approved in the U.S. That’s what we tell
people, and they will make their own decisions if that is what they
are going to purchase or not. The FDA certainly doesn’t, the
state of Wisconsin does not accept liability for every drug
purchase that is made in the U.S. by a consumer in a pharmacy.
Azar – I know you weren’t here earlier today, but Mr.
Roberts, our first witness today, testified about counterfeit drugs
that he had received for his AIDS treatment. And the question that
he had asked that I found fairly significant was, “Who will
be responsible?”. Who does he go to, to get compensation, and
is he going to have to hire an international tort lawyer to go
after compensation and trace down the source of the drugs that
he’s gotten – the counterfeit drugs? It’s
something that I think consumers – as we think about
importation -- are concerned about and very worried about. Another
thing that has come up, Dr. Rodriguez testified earlier today, and
we had a witness at the first hearing also, representing a Hispanic
group also, that testified expressing concern that, if we simply
allow importation of drugs that are not FDA-approved, that
haven’t been subject to the distribution controls throughout
the entire process, that we really would be creating a two-tiered
system of drug safety in America. One for people who can afford the
gold standard FDA drugs, and one for people who can’t –
a lower standard of safety for drugs. I was wondering because I
think position is that we ought to just let the importation of
drugs as they are now, occur, under the existing assumption that
the drugs are safe, so we ought to just let them in. What is your
perspective on this idea that there’s a two-tiered system of
safety?
Doyle – We believe that the reimportation should be of
FDA-approved drugs, and every drug on our list is one that is
FDA-approved. Now, you may argue that the reimportation of that
drug is not approved, but the drug itself, you could walk into
… every drug on our list, you could walk into an American
pharmacy and purchase in an American pharmacy, fully-approved by
the FDA. I believe that the FDA has a very important role in this,
and that’s why I’m here with respect for the FDA and
the process that you’re all in. I believe, if we really get
on this, and we all work together to develop a reimportation
system, we can do something really good that’s going to drive
the costs down and answer many of the questions that you’re
asking right now. But to just say, you know, there are all these
problems, and we’re not going to do it, plays right into
where drug companies want us all, and doesn’t help us with
the basic issue. That’s why I am.. but, as I say, what we
have on our list are FDA-approved drugs.
Azar – Thank you, Governor.
Carmona – Dr. McClellan first, then Dr. Duke.
McClellan – Thank you for testimony and I want to thank you
as well for your deep concern about the problems of drug
affordability in the U.S. This is obviously a major issue that all
of us who are involved in health policy for the nation should have
at the front of our agenda. And, clearly, this commitment is behind
your work on the website. Just following up on some of the other
questions from other task force members. I’m wondering if, in
addition to the task force itself, if there are other steps you are
interested in pursuing – in addition to the website, if there
are other steps that you are interested in pursuing, beyond
referring Wisconsinites to three Canadian pharmacies that your
staff has visited? I guess, on this point, I do think that all of
the drugs on that list are probably not FDA-approved, in the sense
that they were manufactured in U.S. facilities and subject to U.S.
manufacturing processes and the like. It may have the same name of
the drug, but very often, drugs that are sold in other countries
are not subject to the same FDA review for bioequivalence and
evaluation of whether the drugs meet – have the same effects
on the body as drugs that are approved in other countries. So, I
don’t think that’s generally the case, but that’s
something we’d like to find out more about as part of this
task force effort. My question, though, goes to whether you regard
this as doing enough in itself, and whether there might be other
things that might be necessary. For example, bipartisan members of
Congress are interested in finding a way to give FDA and U.S.
government more authorities to assure the safety of imported drugs.
Authorities like requiring foreign sites to register with us;
allowing inspections to occur without advance notice and sort of
the full level of government authority that they can be done in the
U.S.; steps like making sure that the products that are coming into
this country have a reliable pedigree, something that we’ve
heard a lot about from other presenters before this task force.
These ideas are more in line with what the U.S. has for food
inspection and food imports coming into the country, and they
don’t really exist today for drugs. Is that, do you have any
views on this kind of legislation and whether it’s an
important part of assuring the safety of imports and preventing
that kind of two-tiered system that we’ve heard about from
other presenters?
Doyle – Yes, let me just talk about, if I could mention the
first and, Dr. McClellan, I don’t presume to have your level
of expertise on this. But, I will say this, the FDA could take care
of that first issue for us in three days as to whether these are
American manufactured to FDA standards. There are many Canadian
pharmacies that are ready to give you any assurance you want that
they were manufactured in perfect accordance with FDA standards.
All it would take would be for you to go you there and work it out.
So, that could be done very easily and very quickly. On the other
steps, I’m willing to look at anything, but not if, if what
the condition is that you are going to prohibit people from going
to Canada. I mean, this has now been going on for ten, twenty years
and it’s growing and growing. I think the American public,
like the Wisconsin public, would be very cynical about some of the
efforts that you have discussed which might be fine on their face.
But, if the condition that comes with them is that you are going to
cut off the ability of all of the people who are currently going to
Canada, of their ability to go there.
McClellan – So, you wouldn’t support legislation like
that introduced by Senator Kennedy or Senator Grassley? You think
that would be too restrictive, or?
Doyle – Well, what you laid out. … I’m
interested in working on any option, and working with you on any
option that we can come up with. But, what I’m saying is that
legislation that conditions those options on shutting off Canada
for Wisconsin consumers, I couldn’t support.
McClellan – And, in terms of working with us, on other steps,
in my current role as the Administrator of the Center of Medicare
and Medicaid Services, we are trying very hard to implement some
other new programs. So, that will bring relief to seniors who need
help the most, those who are choosing between food and drugs, or
rent or other urgent needs, and taking the prescriptions they need.
Staring next month, there will be a new Medicare program that
provides financial assistance and discounts to all seniors with
limited incomes who don’t have drug coverage now. And in
addition can be used by seniors – like those in your state
– who qualify for Wisconsin’s low income program, to
add to that and make sure they don’t have to make that
impossible choice between meeting their medical needs and meeting
their other basic needs of living. We are launching a major
website, we are engaged in a major outreach effort to get people
enrolled in these programs which can provide literally billions of
dollars through financial relief directly and through lower prices
for drugs right away. I’d be interested in finding out a way
to work more closely with the state of Wisconsin to get people
enrolled in those programs to help meet the needs that they have
now.
Doyle – We would look forward to that. And let me also say,
we very much appreciate your efforts and those of your new agency.
We do, in Wisconsin, I believe, have probably the best senior care
program, under a waiver, in the U.S. And it is really significant.
Most of our low and even low to moderate income seniors do not go
to Canada, in Wisconsin, because we have such an effective senior
care program. Now I would like to be able to buy those drugs for
the senior care program from Canada, it would sure save us all a
lot of money. But the program itself, and again, we have worked
very well with your agency on that waiver and I appreciated it
– it really is a life-saver for many seniors. One point,
though that – I know you know this, but I want to emphasize
it -- this discussion often quickly turns to seniors. And, at least
low-income seniors do have some options available to them. Many
younger people have nothing available to them and for their
children and to themselves. And, if we were just dealing with
seniors, which is a huge issue, Canada would be a very important
option, but there are some other options as well. For many of the
non-seniors, there really is no option for them right now, except
Canada.
McClellan – That’s right. And we are concerned about
that in our Medicaid programs and our other state programs, to work
with you on the waivers, as you mentioned. And I think
there’s even more we can do to make our dollars go further in
helping those low-income populations (other than seniors), through
generic substitution programs, through drug management programs and
other steps to help states get lower prices for their drugs through
negotiation. We stand ready to work with you on all of those steps
and I am very pleased to hear about this interest in collaborating
in finding a whole set of solutions to people who most need them. I
agree with you that people in this country should not be forced to
choose between food and other needs – especially those with
limited incomes, and I agree completely with you that we have an
unfair system of drug pricing around the world that is putting too
much of the burden on Americans. I am very much looking forward to
working with you on some of these other steps that can be taken to
address these concerns in addition to endorsing websites.
Doyle – Does that mean all our waivers will be granted?
(Laughter.)
McClellan – Ah, we’re doing all we can.
Carmona – Dr. Duke?
Duke – You have mentioned that your website directs the
citizens of Wisconsin to three drugstores that you found to be
safe, reputable, and reliable. The question I have is, as you said
there are more firms that would be willing to sign up for your
website. Were the other 49 Governors to chose the same route, would
there be sufficient supply of drugs and drug stores available in
Canada to meet that need?
Doyle – Well, it depends on whether the American drug
companies are prepared to sell to the Canadian pharmacies. There
will be as many drugs available as they are prepared to make.
Unfortunately, even while it is now Wisconsin and Minnesota that
have websites up, Rhode Island has linked to our website, I believe
New Hampshire has announced that they are going to do it. I may be
missing some here, but, even with those limited number of states,
the threats are already being made to restrict the sale of drugs to
Canadian pharmacies. You know we are dealing with some pretty
hardball tactics when you shut down MasterCard and Visa and you
threaten the supply of the Canadian drugs over this. But, you know,
I don’t see that I really have any other choice. As I say, in
Wisconsin, people have been doing this for years and they are going
to continue to do it. We have actually introduced a way that they
can have some assurances on what the price is and they can have
some assurance of the pharmacies that they are going to. Again, the
supply is going to be for the drug companies to decide.
Carmona – Ms. Willis.
Willis – What you have described is at the state level. At a
national level, if this task force were to recommend importation of
prescription drugs, do you think it would be more feasible to have
importation at the wholesale level, direct to the retail pharmacy
level, or direct to the consumer? And, as a follow-up question, if
you think it is most effective to go directly to the consumer,
would this importation pertain to all types of prescription drugs,
or should there be any restrictions on the availability directly to
the consumer?
Doyle – My great preference for this is that you would
approve wholesale purchase, and then we could go back, in
Wisconsin, to the way I’d like it to be. I’ve often
said that there are two sets of victims of the situation that have
right now that the drug companies are putting on us. One is the
biggest number, and the one I have to look out for most
importantly, are the citizens of the state of Wisconsin, the
consumers. But, the other is the pharmacists. They’re not the
ones – they’re just caught in the middle in this thing.
My preference would be, if we’re all sitting down with a
goal, is that there would be Canadian importation; that we would be
setting up a system that every one of those drugs are FDA-approved
and it would be done at the wholesale level. That would be my, if I
could just sit down and design it, that’s how I would do it.
But, right now, I have to make a very hard choice and it’s
not, in many ways, a fair choice, between pharmacists in our state.
And… by the way, in our system, on our website, if you are
filling out one of the forms from our website, it is only
for… it is not for the original prescription. You have to go
to a Wisconsin pharmacist and get an original prescription; these
are for refills. But, I would prefer that that be done through
Wisconsin pharmacists who are good, local businesspeople who I
would like to make sure are part of this. But, they are caught in
the squeeze. I can’t say, my interest right now has to be the
consumer; that’s who I have to look out for, as Governor of
Wisconsin.
Carmona – Governor, last question. Clearly, it seems,
you’ve thought through this quite a bit and you are serving
your constituents as best you can under these difficult issues
before you. Certainly, this is a short-term remedy, assuming that
it can be done safely as you say. Have you given any thought to the
long-term consequences of such a policy of importation for the
U.S., not just for your state, but for the U.S. We’re looking
at this more globally; Southern states also might want to be
dealing with Mexico and other countries in South and Central
America. And so, the future consequences – intended or
unintended -- of such a policy, where we become more dependent on
other countries for our pharmaceutical supplies. Have you given any
thought to that?
Doyle – Well, I believe we can become significantly less
dependent if we introduced some competition here. And, I
can’t speak about other countries; Canada’s the one I
know best. I will tell you, this whole sell that’s trying to
be made, is not going over. People in Wisconsin do not believe that
the Canadian system is unsafe or unreliable. They just don’t
believe it, as much as that stuff is getting put out there, it just
doesn’t sell in a state like Wisconsin. You know, we know
Canada pretty well and we don’t believe it. I believe that
the long-term effect of reimportation, as I said earlier, is really
a market effect. It’s going to say to these companies that
you have to respond to the consumer demand to bring the prices
down. If it means taking those ads off the air -- I which they are
trying to convince me to go to my doctor to convince my doctor that
he should prescribe a drug to me -- to help lower the prices, then
that’s what they should do. They’ve got to start
responding to the consumer pressure. If what we’re talking
about is always government responses, the FDA w |