News Releases

Generic Drug Industry Supports First Ministers' National Pharmaceuticals Strategy

Toronto, September 17, 2004 – Canada’s generic drug makers today congratulated First Ministers on their National Pharmaceuticals Strategy, particularly the action plan to accelerate access to non-patented drugs.

“Action on many of the points covered in the National Pharmaceuticals Strategy should support the long-term viability of prescription drug coverage for Canadians,” said Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA). “We are anxious to work with the Ministerial Task Force on developing and implementing the Strategy and we urge all governments to make this a priority.”

Keon said that Canada’s generic drug makers agree wholeheartedly with First Ministers that affordable access to drugs is fundamental to equitable health outcomes for all Canadians.

The CGPA has tabled proposals with the federal and provincial governments that would accelerate access to non-patented drugs, one of the Strategy’s objectives, and save $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.

Health-care commissioner Roy Romanow called on the federal government to review this practice in his November 2002 report. In February 2004, the Competition Bureau made the same recommendation.

“The use of generic drugs already saves Canada’s health-care system more than $1.5-billion annually,” Keon said. “We believe we can do more and we’re ready to get to work immediately to help make the First Ministers’ National Pharmaceuticals Strategy a reality.”

In Canada, generic drugs fill 40% of all prescriptions yet account for only 15% of the $15-billion spent annually on prescription medicines.

In the United States and the United Kingdom, generic drugs are used to fill approximately 50% of prescriptions but in Canada that figure is only 40%. The CGPA estimates that if use of lower-priced generics in Canada increased to 50% as it is in these other countries, it would save Canada’s health-care system at least $375-million in the first year alone.

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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