FDA sues Rx sellers to stop importation of drugs from Canada

The companies argue they are doing nothing illegal and that doctors send patients their way for affordable medication.

By Tanya Albert, AMNews staff. Oct. 13, 2003.

The government is cracking down on stores and Web sites that help American patients fill their prescriptions through Canadian pharmacies at lower prices than they could get in the United States.

The U.S. Dept. of Justice last month filed a lawsuit against two companies, Rx Depot Canada LLC and Rx Depot Inc., and the Food and Drug Administration sent a warning letter to a third, CanaRx Services Inc.

FDA officials said they are concerned about the medications' safety. In its lawsuit, the government accused the two companies of breaking drug reimportation laws.

Company executives said that the medications are safe, sent from legitimate Canadian pharmacies that are under tight scrutiny from the Canadian government. They said their business practices don't break any laws.

"We are doing nothing illegal," said Russell Machover, owner of Rx Depot Canada. "They don't mind that people drive to Canada to fill prescriptions. If someone lives in Mississippi, they can't do that. We are helping facilitate someone in Mississippi to fill a prescription at a Canadian pharmacy."

Rx Depot Canada and Rx Depot Inc. are incorporated as separate businesses but are sister companies whose Web sites list nearly all the same 75 offices in 22 states. Rx Depot lists four additional locations that Rx Depot Canada does not.

The offices assist U.S. patients in sending prescriptions from their American physicians to Canada.

A Canadian physician reviews the prescription and information about the patient and rewrites the prescription. The Canadian prescription is then sent to a Canadian pharmacy that fills it and sends it directly to the U.S. patient. This allows patients to save up to 70% off of U.S. retail prices.