Friday, March 23, 2007

Online drug loss hard pill to swallow

The numbers are now verifying what we already knew. Canadian online pharmacies had a tough year in 2006. I think anyone who has survived this long has likely found their niche and will continue in business. However, there is no real sign of growth in the industry. With the manufacturer restrictions solidly in place and Medicare Part D entering its second year, the only factor that could change is the exchange rate. A sinking Canadian dollar may be the only way these pharmacies will see leaps in sales.

From the Financial Post:
Dozens of Canadian Internet pharmacies have closed shop or laid off staff after sales at the country’s online drugstores plunged by nearly 50% last year.

A report released Wednesday by IMS Health, a company that tracks pharmaceutical sales, suggests Internet pharmacies sold only $211-million worth of prescriptions into the U.S. in 2006, a steep drop from sales of $420-million in 2005.

The declining revenues forced about 30 online drugstores — whose chief business was selling cheap Canadian medication to U.S. seniors — to close around the country, according to the Canadian International Pharmacy Association. ...more

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