Illinois governor seeks probe of drug makers

By Bloomberg News, 10/3/2003

SPRINGFIELD, Ill. -- Illinois Governor Rod Blagojevich yesterday asked his attorney general to investigate whether drugmakers are violating antitrust laws with efforts to keep US patients from buying low-cost drugs from Canada.

State Attorney General Lisa Madigan's probe would center on whether manufacturers limit supplies sent to Canada, which would violate state and federal antitrust laws, Blagojevich said in a faxed statement. Pfizer, GlaxoSmithKline PLC, AstraZeneca PLC, and Wyeth have cut shipments to the country, the statement said. "If we find they are violating the law to keep prices high, we'll take action," Blagojevich said in the statement.

Blagojevich's request is the latest volley in a battle between pharmaceutical companies and local and state governments looking to rein in healthcare costs by buying cheaper drugs in price-controlled Canada. The Food and Drug Administration has said that buying medicines from Canada for use in the United States is illegal and warned that the drugs may not be safe.

Iowa Governor Thomas Vilsack and Minnesota Governor Tim Pawlenty last week followed Blagojevich in pledging to explore whether their states can save money by buying employees' prescription drugs from Canada. Blagojevich has appointed special advocates to study buying Canadian drugs, and California State Attorney Bill Lockyer has asked the FDA for an opinion about the legality of such purchases if state laws are changed.

Michael Albano, mayor of Springfield, Mass., has said his city would save as much as $9 million a year by buying drugs from Canada.

The US House has passed a bill that would allow Americans to buy drugs from countries such as Canada. The measure is being fought by drug makers and regulators and may be jettisoned in negotiations with the Senate after a majority of Senators opposed it.