Dive Brief:
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U.K. pharmacy chain Great British Drugstore has established an e-commerce site for people in Maine to buy brand name prescription drugs at discounts of up to 70%.
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The move takes advantage of a one-of-a-kind law passed last June that allows Mainers to buy prescription medicine from overseas retailers. Most online pharmacies selling in Maine are Canadian, but the law allows drugstores in Canada, the U.K., Australia, and New Zealand to sell there.
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A group of Maine pharmacies has challenged the law in court, questioning the fairness of the foreign competition and raising concerns about drug safety.
Dive Insight:
This law in Maine allows overseas pharmacies to sell brand-name prescription drugs online and ship them to Maine addresses in hopes of lowering health care costs for its citizens. But Maine pharmacies contend that the Great British Drugstore is violating U.S. and U.K. laws by selling overseas. They also question the safety of the drugs, although all the medicines are approved by the U.S. Federal Drug Administration and are sourced in the United Kingdom.
This law is unusual in the U.S., but could be an example for other states to follow — and an opening for foreign retailers who often obtain prescription medicines at lower prices — because drug prices are such a major concern for U.S. consumers.
