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Generic Drug Industry Offers Improvements to Access to Medicines Bill
Providing affordable generic medicines to developing countries is important and achievable with changes

Ottawa, February 26, 2004 – Canada’s generic drug makers today proposed several amendments to help ensure Bill C-9 will be effective in delivering Canadian-made generic pharmaceuticals to developing countries facing health emergencies.

In an appearance before the House of Commons Standing Committee on Industry, Science and Technology, representatives of the Canadian Generic Pharmaceutical Association (CGPA) said that while the generic industry wants the legislation passed, Bill C-9 needs major revisions before it will deliver the intended results.

“Canada’s generic pharmaceutical industry applauds the government in its commitment to make Canadian generic pharmaceuticals available for export to developing countries in times of health emergencies, such as the HIV/AIDS pandemic in sub-Saharan Africa,” said Jim Keon, President of the CGPA.
“Unfortunately, Bill C-9 is not effective as it is currently worded.”

Keon expressed the generic pharmaceutical industry’s desire to work with the government, Committee members and other stakeholders to develop workable amendments for Bill C-9 to ensure the legislation will be as effective as possible.

Keon said the legislation needs to be revised to simplify overall requirements and provide market certainty before generic companies will consider participating in the initiative.

The most significant problem with Bill C-9 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.

“The right of first refusal provision erodes the incentives for generic drug makers to seek out and set up deals for less developed countries,” Keon explained. “A generic company cannot invest time and millions of dollars if it has to hand negotiated contracts over to brand-name drug companies.”

Keon noted there are less onerous alternatives to the right of first refusal provision that would still ensure Canada meets its international trade obligations. CGPA outlines two alternatives in its submission to the Committee.

Other amendments to Bill C-9 proposed today by the generic pharmaceutical industry involve providing non-governmental organizations with the ability to purchase medicines for developing countries and changes to the compulsory license requirements.

“Canada’s generic industry believes that the goal of providing affordable generic medicines is important and achievable,” said Keon. “The CGPA and its member companies simply wish to ensure that the steps taken will lead to substantive results.”

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.

Download PDF Document
	CGPA Brief to Industry Committee re: Bill C-9 (562k pdf)
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