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Provinces Concerned EU Pharma Demands Will Hike Drug Costs

Posted on May 11, 2012 by Jim Keon

Provincial governments are raising concerns that European Union (EU) trade talk demands for longer brand-name drug monopolies will increase their health-care costs.

 

The governments of Ontario, British Columbia and Manitoba recently made public comments warning that measures to benefit brand-name drug companies will come at the expense of taxpayers and patients.

 

On May 4, 2012, BC’s minister of jobs, tourism and innovation, Pat Bell, was quoted in media stories stating: “We would strongly urge Ottawa to ensure there are no incremental costs to British Columbia as a result.”

 

Minister Bell told the BC Legislature that his government has taken “a very strong position” on the issue.

 

An academic study from February 2011 estimated that patients, employers and governments would pay an extra $2.8 billion annually for prescription drugs if the EU’s demands are adopted.

 

Ontario would be hit the hardest with an annual cost increase of $1.2 billion.

 

When asked about Ontario’s position on the issue in the Provincial Legislature in early May, Finance Minister Dwight Duncan’s reply expressed concern about the potential impact on the generic pharmaceutical industry. “Ontario is one of the leading producers of generic drugs in the world. We export a good portion of those. They create good-paying jobs right here in Ontario. I would not want to jeopardize those jobs.”

 

In an April 2012 letter, the Government of Manitoba said it has made clear to the federal government that the EU’s pharma demands are of “vital concern”.





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