ABSTRACT
Canada is home to a number of rapidly growing Internet pharmacies that export drugs to the US. The practice takes advantage of lower Canadian drug prices that are enforced by legislation. The trade threatens to destabilize the global pharmaceutical business model because it undermines higher prices that have traditionally been accessible in the US. The approach tends to reduce the attractiveness of Canada as a target for pharmaceutical investment by major corporations and, therefore, weakens Canadian public policy approaches that seek to promote pharmaceutical R&D activities.