News Releases

Access to Medicines Bill Needs Major Changes to be Effective: Generic Drug Industry
Brand-name drug makers hijack Canada's landmark initiative

Toronto, February 12, 2004 – Legislation reinstated in the House of Commons today will not deliver Canadian-made generic drugs to people in developing countries who desperately need them, according to Canada’s generic pharmaceutical industry.

Since the introduction of Bill C-56 in November 2003, the Canadian Generic Pharmaceutical Association (CGPA) has clearly and consistently told the Government of Canada that the legislation needs major changes to be effective. Despite a January 23, 2004 letter to Prime Minister Paul Martin outlining obstacles to delivering on the bill’s intent, it was reinstated today without amendment.

“The government’s intention is laudable but it is unlikely that any generic pharmaceutical company in Canada will use it unless substantial amendments are made,” said Jim Keon, President of the CGPA. “The government has allowed this landmark initiative to be hijacked by the multinational brand-name pharmaceutical industry.”

One of the most flawed sections of the bill is the provision that gives brand-name drug makers a right of first refusal. This will allow brand-name drug makers 30 days to take over contracts already negotiated by generic companies.

“Why would the government do this?” Keon asked. “The very existence of the right of first refusal will dissuade Canadian generic companies from pursuing agreements or bidding on contracts under this initiative. Generic drug companies will not invest time and millions of dollars if it could all be taken away.”

Another industry concern is the restriction that the buyer must be a government, to the exclusion of non-governmental organizations that deliver health care in developing countries. The CGPA will seek substantial amendments to the legislation during the committee process.

“We believe strongly that Canada is doing the right thing in taking steps to provide low-cost generic medicines to developing countries. We simply want to ensure that the steps taken will actually provide access to affordable generic medicines by the people in developing countries who need them,” said Keon.

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, 45% less than their brand-name equivalents.

< back to 2004 index