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Date Posted: 00:10:44 11/09/03 Sun
Author: Don Jones
Subject: Kenner store defies order to close
In reply to: Repost 's message, "Don't pass up the on-line pharmacy route" on 00:58:32 11/07/03 Fri


Kenner store defies order to close



Saturday November 08, 2003


By Mary Judice
Personal finance writer

The Louisiana Board of Pharmacy, which has successfully closed down kiosks and storefronts selling cheap Canadian pharmaceuticals in recent weeks, is deciding what to do about a Kenner storefront that's refusing to shut down.

The storefront, called NorthCareDrugs.com on Williams Boulevard, is snubbing the board's order to stop operating its pharmacy because it claims it doesn't operate a pharmacy.


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"We will not close because we are not a pharmacy," said Stephen Hua, director of marketing for NorthCareDrugs.com of Winnipeg, Manitoba. "All we do is forward information to a pharmacy. We have no direct partnership with them."

Hua wrote to the pharmacy board informing it that he would not abide by the board's cease and desist order to close the store. He has asked the board to list the actions that "make us guilty of illegally practicing pharmacy."

The pharmacy board sent out 10 cease and desist orders since Sept. 26. Some went to Internet sellers of Canadian drugs and others to Canada-oriented storefronts or kiosks. Last month, Access Canada RX, which operated a kiosk in Oakwood Center on the West Bank, shut down. The state also has shut down Canada Discount RX and Northlandmeds Pharmacy.

Carlos Finalet, general counsel for the pharmacy board, said a storefront or kiosk is, by state definition, a pharmacy even if does not sell drugs directly but only acts as a broker or referral agent between a patient and a pharmaceutical supplier. A storefront is considered a pharmacy by accepting prescription information, Finalet said.

Hua said that if his company is defined as a pharmacy because it accepts prescriptions and transmits the information to pharmacies in Canada, then his company will stop transmitting them and ask customers to fax their prescriptions themselves. He also said his company does not accept payments but arranges to have the customer send payments to pharmacies in Canada.

Finalet said the state is in negotiations with other state and federal agencies about what follow-up steps to take against firms that do not follow its orders. Possibilities include asking the district attorney to file criminal charges or seeking an injunction through civil court.

Canadian drugs usually cost less, often at least 33 percent less, as the same or comparable drugs sold in the United States. They are cheaper because the Canadian government restricts wholesale drug prices and limits malpractice suits. Also, much of the high cost of pharmaceutical research and development is borne by American consumers.

The issue of importing cheaper Canadian drugs has galvanized both sides.

Some consumers, especially those with health plans that do not provide pharmacy benefits, see Canadian pharmaceuticals as an answer to the spiraling cost of health care. They have gotten some support. State officials in Wisconsin, Minnesota, Illinois and Iowa have tried to allow their residents to get cheaper prescription drugs outside the United States.

The movement to allow drug imports got a boost when New York Mayor Michael Bloomberg said he will press federal officials to allow New York City to import drugs for city workers.

Michael Albano, mayor of Springfield, Mass., offered a Canadian drug benefit to city workers this year, and the city expects to save $4 million to $9 million a year.

However, other states, like Louisiana, are fighting the importation of Canadian drugs or the reimportation of U.S. drugs. Other states opposing importation are New Jersey, New York, Oklahoma, Montana, North Carolina, Oregon and Indiana.

The U.S. Food and Drug Administration has fought drug imports because of safety concerns. Many imported drugs are not approved by the FDA and may have too little active ingredients or may be expired or even contaminated.

The FDA allows individuals to bring in three-month supplies of prescription medicines from other countries, as well as some drugs for experimental use. But it is generally illegal to import a drug into the United States.

A federal judge in Tulsa, Okla., on Thursday issued a preliminary injunction against a chain of 85 stores called RX Depot, essentially shutting it down. The FDA had argued that RX Depot was violating the law. RX Depot has vowed to appeal.

In Louisiana, the board licenses all pharmacies operating in the state. One requirement of the license is that prescription drugs sold be approved by the FDA and come from licensed sources. There are no foreign pharmacies licensed in Louisiana.

Finalet said the board not only wants the storefronts to close but also wants to stop Canadian pharmacies from filling prescriptions from Louisiana residents.

Finalet said the state would treat those operating a storefront for Canadian pharmacies the same as Canadian Internet pharmacies that do not have a physical presence in the state but supply prescription drugs to consumers in the state.

He said the state may send additional cease and desist orders to kiosks and Internet sites soon.

"The Louisiana Board of Pharmacy is being very aggressive on these issues," Finalet said. "We are at the forefront nationally."

Finalet said the cease and desist order is a preliminary notice, taken before any other disciplinary action. He said practicing without a pharmacy permit is a crime in Louisiana.

Hua, meanwhile, said his company operates another storefront in Florida and plans to open three in California soon.

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