The Medicine Equity and Drug Safety Act of 2000: Releasing Gray Market Pharmaceuticals

Abstract

As increased pharmaceutical prices became a political focal point amidst a contentious 2000 presidential campaign, Congress sought a compromise between agitated American consumers and a healthy pharmaceutical lobby. The resulting Medical Equity and Drug Safety Act of 2000 seeks to lower domestic pharmaceutical prices by allowing pharmacists and wholesalers to import U.S. pharmaceuticals that are sold abroad by U.S. companies at lower prices.
This Article analyzes two aspects of the new legislation: whether the law is compatible with existing intellectual property rights regarding patent holder control of the imports of patented goods and a critical analysis of the public policy and economic reality of instituting such a plan as envisioned by the Act. While implementation of the law is contingent on the as of yet unsecured approval of the Secretary of Health and Human Services, it is unlikely that this issue will dissipate in the near future.