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Study Says Drug Imports May Not Hurt Profits.

Knight Ridder/Tribune Business News, April, 2004

By Christopher Rowland, The Boston Globe Knight Ridder/Tribune Business News

Apr. 15--Boston University researchers say they have found a big hole in the pharmaceutical industry's argument that cheap prescription imports from Canada would hurt profits that fuel critical research for new drugs.

The BU analysis, to be released today, says that drug companies may break even or actually make profits on Canadian imports because the lower-priced imports would spur new prescriptions. If true, that could leave research budgets intact.

Key to the equation is the balance between new drug sales and sales that are simply shifted to Canadian sources from US pharmacies. If more than 44.5 percent of the Canadian imports represent new prescriptions,...

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