Prescription Drug Importation, Investment and Employment in Michigan

Authorization of the importation of prescription drugs from countries with lower prices
than the United States is an increasingly attractive proposition for state and federal policymakers.
The short-run benefit of reductions in prices of selected prescription drugs for selected
patients may be viewed as a sufficient reason to favor importation. However, there may be
longer-run effects of importation of prescription drugs that are less desirable, including reduced
investments and altered regional investments in pharmaceutical research and development.

August 18, 2004

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