Originally Posted by Daithi
I remember something similar happening in the drug industry. The drug manufacturers were selling drugs in Canada for far less than they sold the exact same drugs in the U.S. People were going across the border (or ordering across the Internet) drugs in Canada to get them cheaper. I remember there was a big stink about the practice but I don't remember how it was resolved. Maybe that was one of the reasons for the Medicare expansion providing prescription drugs occurred.
From memory only, the reason drugs are/were sold cheaper to Canadian companies is that the Canadian Government regulates the markup allowed on prescription drugs.
Manufacturerers do not have to sell drugs to Canadian Pharmacies, but obviously they have reasons for doing so. Reasonable profit being better than no profit at all perhaps.