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Concerning Canada

Executive Summary

It's technically illegal for US citizens to buy pharmaceuticals from Canada, but that's not stopping anybody. Indeed, the trend is gaining momentum at the state level. Pharmaceutical and biotech companies have a range of options for responding to re-importation, such as emphasizing the safety risks of new purchasing channels, limiting shipments into Canada, and getting tougher in price negotiations. Making pricing a trade issue might help the industry, but it's a tough case to argue. If worse comes to worst, companies may need to take legal recourse. If re-importation continues unchallenged, it is likely to lead to US price controls.

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