Minnesota AG Alleges Drug Company Boycott of Canada

About 2 million Americans get their prescription drugs filled in Canada despite the fact that medicinal imports to the United States are illegal.

But allegations that U.S. drug companies have banded together to choke off the flow of drugs to Canada to slow reimportation has Minnesota Attorney General Mike Hatch (search) investigating.

"I think that's despicable. I think it's certainly a key part of our case and that's what we're alleging," Hatch told FOX News.

In the attorney general's investigation of GlaxoSmithKline (search), the pharmaceutical company agreed to turn over internal documents as long as they would be sealed, or kept unavailable to the public.

Hatch is limited in what he can say about those papers, especially now that the state Supreme Court has agreed to hear the case contending the documents should be unsealed. But Hatch did say that in his view, the documents prove his claim of an organized drug company boycott of Canada with the approval of the Bush administration.

"I'm talking about administration officials, in the Bush administration, and in Congress, at least one congressman, attending meetings of PhRMA (search) with GlaxoSmithKline and other pharmaceutical companies talking about a boycott of Canada," Hatch said.

A Glaxo spokeswoman told FOX News that they have done nothing wrong and they think Hatch is just trying to get out from under a deal he made. The spokeswoman said they did reduce supplies to one wholesaler in Canada who, she claimed, broke agreements to make sure that the drugs went to Canadians.

One Bush official said that the administration knew of the investigation by Hatch, a Democrat, but hadn't heard of a planned boycott and could not comment on it.

Click in the box near the top of the story to watch a report by FOX News' Steve Brown.