WASHINGTON—President Reagan has signed a controversial health bill that allows U.S. firms to export drugs prior to approval by the Food and Drug Administration and provides a federal no-fault compensation system for children injured by vaccines.

The drug export provision was strongly supported by pharmaceutical manufacturers who can now export prescription drugs to 21 foreign countries providing the drug has been approved for use in that country and the manufacturer is actively seeking approval from the FDA. Drugs rejected by the FDA cannot be exported.

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