Competition office examines Glaxo threats to Internet pharmacies

Canada's competition bureau is investigating pharmaceutical giant GlaxoSmithKline. The world's No. 2 drug company has threatened to prevent Internet pharmacies in Canada from selling its products to Americans.

"We received the complaint and we are looking into the matter to determine if any of the actions of Glaxo raise issues under the Competition Act," said Andre Leclair of the bureau.

Leclair says he can't comment any further because the investigation is confidential.

• MARKETPLACE: Internet Pharmacies

Last month, Glaxo threatened to cut wholesalers off if they sold their products to 29 pharmacies in Manitoba blacklisted because they sell drugs to American customers over the Internet.

The pharmacies would be forced to buy directly from Glaxo, ensuring that only Canadian orders are filled.

More than 90 per cent of sales at the online pharmacies are to U.S. residents. Many seniors rely on the low prices.

Some Internet pharmacists have U.S. prescriptions reviewed and signed by Canadian doctors, even though the physicians have never seen the patient.

Seniors groups in the U.S. called for a boycott earlier this month of all Glaxo over-the-counter products such as Tums, Aquafresh Toothpaste and Contac cold medicine.

Barbara Kaufman of the Minnesota Seniors Federation called Glaxo's threats "the lowest form of blackmail."