Internet-based pharmacies operating out of Canada have gained much business in the last few years. The ease of availability and competitive pricing have lured many customers from the United States to Canadian online pharmacies. As of 2005, of the more than 7000 pharmacies based in Canada, almost 270 were said to be operating either completely from the Internet or were using a combination of conventional and distance dispensing methods - including net-based retail.

Most of these firms operate from Western Canada and the industry employs nearly 7000 people. While the statistics may not seem overwhelming, the number of customers catered to by these online drug stores is quite significant. Of the total sales of pharmaceutical products, mail order drugs alone raked in upwards of $1 billion in sales in 2004. The online sites serve an estimated 2 million patients in the US including seniors and those without any insurance.

However, it has not been a smooth sail for the Canadian online pharmacy industry. It had to defend itself against the charges hurled from many quarters. Fears have been raised that Canadian doctors were rewriting prescriptions issued by US physicians. The Canadian Online Pharmacy industry has predictably denied all the allegations. According to them, Canadian physicians often review the prescription given by their US counterparts and do a double check on the patient