News Releases

Generic drug makers table two proposals providing $50-million in annual cost-savings at Quebec Symposium

Quebec City, May 20, 2004 – Canada’s generic pharmaceutical industry today put forward two proposals to save the Quebec government $50-million annually in the cost of its drug benefit program. The proposals were tabled today at the Ministry of Health’s two-day symposium on optimal drug use in Quebec City.

“The proposals tabled today will achieve two important results,” said Jean-Guy Goulet, Chair of the Canadian Generic Pharmaceutical Association (CGPA). “They will provide substantial savings for Quebec’s drug insurance plan and they will help create a climate where generic pharmaceutical makers can increase their investment in the Quebec economy.”

The CGPA's first proposal is for the Quebec government to separate the listing of brand-name and generic drugs so that lower-cost generic versions can be added to the drug plan as soon as they are approved by Health Canada. This measure would generate cost savings of $17-million this year alone and mirror legislation introduced by the Ontario government this week as part of its Budget Bill.

The second proposal is to abolish Quebec’s 15-year rule, which extends brand companies’ market monopolies beyond the periods prescribed under the Canadian Patent Act. Scrapping the 15-year rule would save at least $30 million annually.

Goulet also pointed out that the Quebec government and private payers could save a total of $140 million per year in prescription drug costs if generic usage in Quebec increased to the same level as in the rest of Canada. According to recent sales data from IMS HEALTH Canada, generic market share in Quebec is only 11% while the average in the rest of Canada is more than 15%.

“As prescription drug expenditures continue to consume an ever-increasing share of health-care dollars, the demand for high quality, low-cost prescription drugs will increase,” Goulet said. “The question is, will generic drug makers be allowed to meet that demand, deliver millions of dollars in savings, and make their full contribution to Quebec’s health-care system and its economy?”

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.

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