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Pharmacies miss e-commerce boom



Published on February 21, 2000
Published on February 13, 2011

BY BRIAN SALISBURY ottawa business journal

Topics :
Canadian Association of Chain Drug Stores , Health Canada , National Association of Pharmacy Regulatory Authorities , U.S. , Canada

Like in most industries, companies in the Canadian healthcare market are jumping into the wide world of Internet sales. However, they've been restricted to swimming in the shallow end.

Simply put, online retailers are not allowed by law to dispense medications to customers over the Internet, which in the U.S., has facilitated one of the fastest growing categories of e-commerce.

As a result, online pharmacies have been the subject of much debate inside healthcare circles.

"We've definitely had a lot of interested parties come to us," says Roslyn Tremblay, a Health Canada spokeswoman.

However, it appears the interest is falling on deaf ears.

"I can't say we're close to anything," says Tremblay. "It's a tall order. We have to be sure about the quality and efficacy of these products."

This is frustrating for people like Glebe Apothecary Internet director, Peter Kuske. His website, feelbest.com, brings in about 50% of Glebe's revenues, but that ratio could be a lot more if Internet-enabled prescriptions were allowed in Canada.

"People would gravitate toward it. Prescriptions are the least convenient part of the pharmacy experience for the public," says Kuske.

Currently, customers can fax their prescriptions into the pharmacy, and the National Association of Pharmacy Regulatory Authorities has been pushing for similar treatment for prescriptions sent in via e-mail.

A panel at a recent conference organized by the Canadian Association of Chain Drug Stores (CACDS) discussed regulatory impediments for online pharmacies. Protection for online pharmacy customers was at the top of the agenda, as was protecting against prescriptions being issued without a face-to-face visit, possibly by an unlicensed doctor.

U.S. regulators have awarded seals to online suppliers who adhere to the same standards applicable to traditional pharmacies, and Canadian authorities have taken notice.

"As a bottom line, we're concerned about consumer safety. We would be happy to see the seal program come to Canada," says Ellen Mary Mills, vice president, policy and public affairs for the CACDS.

But, while associations and companies are talking about the possibility of online pharmacies, there hasn't been enough of a groundswell yet to push legislators to the bargaining table.

"Part of it is the regulation, but the fact is we just haven't had a collective voice on the matter," says Mills.

Kuske agrees: "We can scream at the government until we're blue in the face, but nothing will happen until we're 100 per cent together. Remember, most Canadian pharmacies don't even have e-mail."

American operations like Drugstore.com and PlanetRx have already made a considerable splash in the online pharmaceuticals pool. The U.S. National Association of Chain Drug Stores estimates that, within five years, Americans will fill about 40 per cent of their annual 2.5 billion prescriptions online.

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