Drug importer called a senior lifeline

U.S. judge hears testimony on Rx Depot injunction

Published: Thursday, Oct. 9 2003 12:00 a.m. MDT

TULSA, Okla. — Shutting down a firm that links seniors with low-cost medication from Canada would create a "domino effect," leaving Americans without access to drugs they can afford, the company's lawyer told a federal judge during a hearing Wednesday.

U.S. District Judge Claire Egan will decide whether to issue a nationwide injunction against a Tulsa-based chain of 85 storefronts that operate under the names Rx Depot and Rx of Canada.

Last month, the Justice Department gave the founder of the chain an ultimatum: Shut down or be sued. The government alleges that the company is breaking the law and putting the public at risk by importing drugs from Canada.

The government's lawyers told the judge the case was a simple matter involving violations of federal drug laws. Only manufacturers are allowed to bring medicines into the country.

"It's not about prescription drug policy. It's not about the high cost of prescription drugs," said Justice Department attorney Alan Phelps.

Phelps said the government couldn't quantify the risk to the public's health, but the company operated outside the government's "closed safety system."

Rx Depot attorney Fred Stoops told the judge the case had nothing to do with safety.

"This case is about money and protection," Stoops said.

Stoops urged the judge to reject the injunction "so people can maintain their ability to afford drugs."

The city of Springfield, Mass., found it could save as much as $9 million by offering employees the chance to buy cheaper drugs from Canada, he said.

All the outlets operate in the same way. Customers bring their prescriptions into the store, where an administrator looks up the price. The prescription is copied and faxed along with the patient's medical history to a Canadian pharmacy. The drugs arrive in three weeks.

About 100 people, mostly seniors, packed the courtroom for the hearing. Many of them earlier had stood outside the federal courthouse waving signs that said "Save Rx Depot" or "Rx Depot Yes."

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