7 November 2003
Rx Depot to be padlocked
The government has prevailed in its efforts to shut down Rx Depot; Judge Claire Egan granted the request by the Department of Justice to close the Tulsa firm that imports lower-priced Canadian drugs for American consumers.
From Egan's ruling:
This court is not unsympathetic to the predicament faced by individuals who cannot afford their prescription drugs at US prices. However, the defendants are able to offer lower prices only because they facilitate illegal activity determined by Congress to harm the public interest.
The pharmaceutical industry's business model lose money in countries like Canada with artificial price controls, make it up in the US where the market is freer makes a certain amount of sense. This ruling is going to be perceived, however, as yet another instance of Sticking It to the Little Guy, and as a result we're going to move one step closer to nationalized health care, which will likely stick it to everyone.