glk retaliation

Topics: Pharmacology, United States, Canada Pages: 1 (381 words) Published: June 13, 2014
GLAXOSMITHKLINE’S RETALIATION AGAINST CROSS-BORDER SALES OF PRESCRIPTION DRUGS GlaxoSmithKline plc(GSK), a prescription drug and personal hygiene consumer products company based in Britain, found itself coping with a new challenge during this period as Americans, especially senior citizens , developed various strategy to deal with the rising drug costs. The flow of drugs from Canadian pharmacies to American consumers captured the attention of GSK and their concern grew as the practice spread. Seeking relief from escalating healthcare costs, many Americans, especially senior citizens, required alternate channels for acquiring the prescription medicines upon which they increasingly relied. Publicizing the increasing costs and promoting a political agenda, u.s. home at a considerable discount to what congressmen from states along the Canadian border began to host bus trips for senior citizens across the border in order to procure prescription drugs at costs as much as 80% lower than those available in the united states. In relatively simple process, seniors and others could take a prescription written by an American physician, send it to a Canadian pharmacy, and within days receive their drugs at that product cost in the united states. Manitoba pharmacies alone claimed $250 million in sales from approximately 400,000 u.s. customers during 2002.’ GlaxoSmithKline was beginning to feel the economic effects of American consumers acquiring prescription drugs from Canada at lower cost, circumventing the traditional prescription drug market. Therefore, responding to the growing popularity of cheaper Canadian drugs among American consumers, GSK defended premium pricing in America. Prescription drugs are cheaper in Canada than the u.s. A dodge caravan costs $31,000 in the u. S. But just $21,000 in u. S. Dollars in Canada. Also in January 2003 in an action GSK closely compared to that of other consumer good manufactures they threatened to stop supplying drug wholesalers...
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