August 23, 2004

Rx Depot Gives Up (or Redirects) the Fight in U.S.

After spending nine months fighting the federal court order that closed its U.S. franchises, Rx Depot, the company that made pharmaceuticals from Canada available in the U.S., withdrew its appeal. In November 2003, Oklahoma federal judge Claire Eagan held that the operation of Rx Depot stores violated federal law that only allowed manufacturers to bring their products into the United States. After the injunction issued, Rx Depot vowed to pursue the appeal and to continue to bring lower-priced drugs to U.S. citizens from Canada. Some franchisees said they would continue operating in spite of the ruling. The company has not explained why it withdrew its appeal. Perhaps it has something to do with the apparently growing grass roots movement to get Americans access to cheaper drug imports. Check out this article from the AP Wire on the Illinois Governor's plan to facilitate the safe dispensation of Canadian drugs, or this piece on the state of Vermont's lawsuit against the federal government over the right to import drugs from Canada.

Posted by franchiselawblog at August 23, 2004 07:04 PM