America pharmaceutical industry is at present fighting it out with their Canadian counterparts. The reason? For one, the latter has managed to garner a sizeable amount of the former’s market share. Driven by more affordable prices, this trend is continuing and Canadian medical stores are adding customers like never before. US pharmaceutical drug companies have gone on the offensive, criticizing their Canadian counterparts for involving in unfair trade techniques. online pharmacies
The origin of the issue goes back to early 90s when the American industry lobbied hard to make cross-border trading with Canada and Mexico responsibility free. The result of this was the American Free trade Agreement or NAFTA. Thanks to COMBUSTIBLE, trade between the 3 North American countries (the US, Canada and Mexico) started out growing. NAFTA acceptable free movement of products across the borders without the imposition of normal cross-border tariffs.
The American industry benefited enormously from this because they could now outsource their production to these countries promote the finished products again to them. Thus the manufacturing costs went down and profits commenced approaching in. American pharmacies, in whose main rival those days and nights was Europe, also acquired from this, as almost all of their R&D facilities were in Canada and the work was done at much lower rates.
The joy of American pharmaceutic companies was short existed as many Canadian companies started selling drugs at discounted prices to ALL OF US customers. This was done as Canadian companies noticed that the cheaper R&D and manufacturing costs can be used to offer cheaper drugs to customers. Further, the price of drugs in Canada is strictly regulated by the federal government. On an average, a buyer based in ALL OF US can save anything from $50-$200 a month getting drugs from across the border. Displaying a nature of competitive capitalism, the Canadian companies started out advertising drugs directly to ALL OF US customers in Border Claims and by other means, like Internet and cellphone, to buyers consist of areas.
In the US, it is against the law to import prescription medications from Canada. However, import of drugs for up to 3 months of private use is permitted.
The interesting fact is that almost all of the brand-name prescription drugs sold in Canada and the US are all products of the same manufacturing plants. Canada imports many raw materials and finished products from the US. Thus, most Us citizens may actually be re-importing American drugs.
With increasing profits, Canadian pharmaceutical companies started looking at other means of marketing including sale via the internet and mail order delivery. The American type of differential pricing at the retail level and for bulk customers like insurance companies means that the real price of your medicine sold may well not be known. Thus, the key segment of customers who have got into contact with Canadian pharmacies are either the uninsured or those states whose negotiation ability has been curtailed thanks a lot to various regulations. Therefore, indirectly at least, these purchasers are in truth paying for the financial assistance doled out to the insured. This is exactly why they conclude paying more for the drugs in their own country.
In the end however the increase in purchase from Canada may actually press the retail prices in Canada North wards. A phenomenon, which, is taking place thus, sooner or later Canadian drugs may also become expensive on equal with their US alternatives. But for now at least, the Canadian medical stores seem to be to be on the right track.