Federal
The Role of the Generic Pharmaceutical Industry in Canada’s Economy
For more than 50 years, Canada’s generic
pharmaceutical industry has played
a vital role in the country’s health-care
system and economy by providing safe,
effective, proven alternatives to more
expensive brand-name medicines.
An October 2007 report by the Competition
Bureau confirms Canada’s generic
pharmaceutical industry is highly competitive
and plays an important role in
controlling prescription drug costs.
Manufacturing
- In terms of who is doing what in
Canada, most brand-name drugs
sold in Canada are shipped into the
country. The vast majority of generic
drugs sold in Canada are made
right here. In fact, the majority of
the pharmaceutical manufacturing
capacity that exists in Canada is
generic.
- A dollar spent on a generic drug
supports more jobs, more R&D
investment, and more investment
in pharmaceutical manufacturing
capacity in Canada than a dollar
spent on a brand-name drug.
Key Economic Numbers: Brand vs. Generic
| |
BRAND-NAME |
GENERIC |
| SALES IN CANADA |
$16.6-billion/74.4%
(source: IMS Health) |
$5.7-billion/25.6%
(source: IMS Health) |
| JOBS IN CANADA |
15,000
(source: Rx&D) |
10,000
(source: CGPA) |
| R&D SPENDING |
$1.3-billion/7.5% of sales
(source: PMPRB) |
$615-million/15% of sales
(source: CGPA) |
Jobs
- The generic pharmaceutical industry
employs more than 10,000
Canadians in well-paid, highly
skilled jobs in research and development,
manufacturing and other
operations.
Innovation
- Generic pharmaceutical companies
in Canada invest approximately 15% of sales in research and
development, which compares to
just 7.5% for brand-name companies.
Brand companies in Canada
invest just 1.8% of domestic sales
into domestic R&D that could lead
to the discovery of a new therapy.
Exports
- Canada’s generic drug industry
generates 40% of its sales volume
from exporting made-in-Canada
pharmaceuticals, primarily to the
United States.
- Canada’s trade deficit in pharmaceutical
and medicine manufacturing
has grown from $2.6-billion in
1998 to $7.1-billion in 2010.
Trade Balances: Pharmaceutical and Medicine Manufacturing
Source: Statistics Canada
Value in Millions of Canadian Dollars
| YEAR |
EXPORT |
IMPORT |
BALANCE |
| 1998 |
1,562 |
4,196 |
(2,634) |
| 1999 |
1,681 |
5,086 |
(3,405) |
| 2000 |
1,853 |
5,962 |
(4,109) |
| 2001 |
2,307 |
7,044 |
(4,737) |
| 2002 |
2,552 |
8,071 |
(5,519) |
| 2003 |
3,401 |
9,044 |
(5,643) |
| 2004 |
4,011 |
9,563 |
(5,551) |
| 2005 |
4,337 |
10,030 |
(5,693) |
| 2006 |
5,442 |
11,369 |
(5,926) |
| 2007 |
6,802 |
12,336 |
(5,534) |
| 2008 |
6,768 |
12,6687 |
(5,919) |
| 2009 |
7,569 |
14,537 |
(6,968) |
| 2010 |
6,170 |
13,320 |
(7,149) |
