News Releases

Generic pharmaceutical industry welcomes premiers' interest in enhanced prescription drug coverage for Canadians
Generic drug makers ready with proposals to save billions in Rx drug costs

Toronto, July 30, 2004 – Canada’s generic drug makers today welcomed reports that Canada’s premiers and territorial leaders will pursue improved prescription drug coverage for Canadians at next month’s meeting with Prime Minister Paul Martin, and offered their assistance to help control rapidly increasing costs.

“Premiers recognize that the cost of prescription drugs is crippling provincial health-care budgets,” said Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA). “Clearly, there needs to be a national strategy to control costs while improving access for Canadians. That’s where the generic pharmaceutical industry can provide immediate help.”

The CGPA has tabled proposals with the federal and provincial governments that would save about $5-billion in prescription drug costs over the next 10 years. These proposals include following the lead of the United States by clamping down on the practice of “evergreening” in the pharmaceutical industry. This tactic allows brand companies to delay generic competition, sometimes for years, by adding and litigating additional patents on the same medicine.

Keon said that it was too early to determine whether or not the CGPA supports the federal government completely taking over prescription drug coverage, but that there are aspects of the idea that might make sense. For example, while it is the provinces that pay for publicly funded drug plans, it is Ottawa that sets pharmaceutical patent laws and reviews and approves all prescription drugs for sale in Canada.

“Right now, there is a disconnect between the people who make the rules and the people who pay the bills,” Keon said. “If the federal government had to take over pharmacare coverage, or pay more, they might be more interested in ensuring Canada had a more balanced pharmaceutical patent regime.”

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