News Releases

Government Amendments to Bill C-9 Fall Short
Obstacles overshadow improvements in delivering drugs to developing nations

Toronto, April 20, 2004 – Government amendments to Bill C-9 tabled today fall short in making the legislation effective in delivering Canadian-made generic pharmaceuticals to developing countries facing health emergencies.

The Canadian Generic Pharmaceutical Association (CGPA) reiterated its support for the legislation and applauded the Canadian government for efforts to improve Bill C-9, but warned that critical shortfalls in the amendments introduced today mean changes are still needed before it will deliver the intended results.

“We are encouraged that these amendments reflect some of the recommendations made by several groups, including the generic industry,” said Jim Keon, President of the CGPA. “Progress has been made but other amendments open up a hornets’ nest of potential court battles that will ultimately undermine the purpose of the legislation.”

One of the amendments will allow brand companies to take generic firms to Federal Court to litigate over a vaguely defined “commercial in nature” provision. Another will allow brand companies to take generic firms to Federal Court to increase royalty payments.

“It is unlikely that a generic company would spend the time and money fighting the brands in court over these contracts,” Keon explained. “Once the brand company initiated litigation, the generic firm would probably withdraw its request for a license.”

Keon said that while draconian regulations of Canada’s Patent Act already force generic companies to go through lengthy and costly litigation regularly to offer their products on the Canadian market, it would be unsustainable for the companies to do so to make drugs to export under Bill C-9.

We’re worried about the precedent,” said Keon. “In the past, brand companies sued Nelson Mandela’s government to stop generic drugs from being shipped to South Africa, and it is clear they won’t hesitate to take Canadian generic companies to court. Brand companies will use the litigation, and the threat of litigation entrenched in these amendments, to dissuade generic companies from pursuing contracts.”

Keon said that while further amendments are required to realize generic participation in this particular initiative, Canadian generic pharmaceutical companies will continue to provide millions of dollars annually in direct donations to non-governmental organizations who provide frontline care in the developing world.

Keon also said that CGPA does not understand why Bill C-9 limits contracts to two years and only one renewal.

“It doesn't make sense for anyone, not the importing country or the generic manufacturer. After a generic drug company has spent three to five years and millions of dollars developing a product it should be able to sell it for as long as they can attract buyers with low prices,” Keon said.

About the Canadian Generic Pharmaceutical Association

The Canadian Generic Pharmaceutical Association represents Canada's generic drug industry – a dynamic group of companies that specialize in the production of high quality, affordable generic drugs and fine chemicals and in conducting the clinical trials required for government approval of generic drugs. It plays an important role in helping control overall health-care costs by keeping the cost of medications down: generic drugs are priced, on average, 40-45% less than their brand-name equivalents.

< back to 2004 Index		TOP