News Releases

INCREASED USE OF GENERICS WOULD RESULT IN IMPORTANT SAVINGS BOTH FOR USERS AND GOVERNMENT

Montreal, June 11, 2003 – Reacting to another announced hike in premiums and deductibles in the provincial government’s prescription drug plan, the Canadian Generic Pharmaceutical Association (CGPA), which represents Canadian and Quebec manufacturers of generic drugs, would remind one and all that the Government of Quebec and users are forsaking $25 million in savings each year because of regulations that favour brand-name drugs. “We understand full well that the Government may elect to support economic development through various incentive measures, but when these measures result in greater medication costs, then we believe that it should review its position.”

The Government of Quebec is now the only one in Canada that does not reimburse the least-cost medication in its drug plan. The 15-year clause favours the purchase of costlier medications, even though the medication’s patent has expired and a generic substitute is available.

“We would reiterate our interest in cooperating to identify concrete means to reduce the medication bill, said Mr. Keon, especially for low-income earners who are unable to absorb such price increases.”

In Quebec, generics are used to fill 35.7% of prescriptions, but account for only 10.8% or $355 million of total prescription drug expenditures of $3.3 billion. If generic usage in Quebec was similar to that elsewhere in Canada, Quebecers could save an additional $140 million per year.

Mr. Keon added that, on average, generic drugs cost 45% less than their brand-name equivalents. The average generic price of $22 compares to an average brand-name price of $55. “If the Government of Quebec intends to reduce the costs of its prescription drug insurance plan, it should focus on the true factors driving the cost increases, namely new and expensive brand-name drugs that account for 89% of prescription drug expenditures in Quebec.”

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 healthcare costs by keeping the cost of medications down: generic drugs are priced, on average, 45% less than their brand-name equivalents.

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