News Releases

Statement from the Canadian Generic Pharmaceutical Association Regarding Changes to Ontario’s Drug Systems

Toronto, April 8, 2010 – The following is a statement by Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA), regarding yesterday’s announcement by the Honourable Deb Matthews, Minister of Health and Long-Term Care, regarding changes to Ontario’s Drug Systems:

“The Canadian Generic Pharmaceutical Association is concerned that the deep price cuts announced yesterday by the Government of Ontario could undermine the future and current availability of low-cost generic prescription medicines, and the economic contribution of Ontario’s generic pharmaceutical industry.

Throughout discussions regarding changes to Ontario’s drug systems, CGPA provided recommendations to the Ontario government, including price reductions, which would save the health-care system hundreds of millions of dollars annually. However, the deep price reductions announced yesterday by the Government of Ontario could undermine generic manufacturers’ ability to produce and supply generic medicines currently on the market, and their ability to develop and bring to market new cost-saving generic drugs.

Substantial investments are required to develop new generic medicines, obtain regulatory approval and challenge invalid or non-infringed patents in order to bring savings to Ontarians as early as possible. Without these investments, the Ontario government and everyone who pays for prescription drugs will be left paying monopoly prices charged by brand-name drug companies.

Generic pharmaceuticals provide excellent value for money. Currently, generic drugs are dispensed to fill fully 63 percent of all prescriptions paid for by the Government of Ontario yet account for only 26 percent of $4-billion the Ontario government spends annually on prescription medicines.

Approximately 75 cents of every dollar spent by the Ontario government on prescription drugs is spent on brand-name drugs. Clearly, reducing generic drug prices does not address the primary cost driver for the government’s drug plan. In addition, generic drug prices were reduced by more than 20 percent in the 2006 changes to Ontario’s drug systems.

The generic pharmaceutical industry employs approximately 9,000 Ontarians, primarily in R&D, scientific and highly skilled manufacturing jobs. Member companies of CGPA have 12 facilities in Ontario, eight of which are used for production and seven of which are focused on R&D. Generic pharmaceutical exports from Ontario are valued at more than $1-billion annually. In seeking significantly lower prices for medicines that already provide excellent value, the Government of Ontario must not jeopardize the jobs and economic activity it aspires to promote.

Using more generic drugs is the most effective way to reduce prescription drug costs. For example, in the United States generic drugs are dispensed to fill 75 percent of all prescriptions. If the use of generic drugs in Ontario increased to levels in the United States, it would save all Ontarians who pay for prescription drugs an additional $640-million in the first year alone.”

Please see attached background document regarding Ontario’s generic pharmaceutical industry.
(included in links below)

For more information, please contact:
Jeff Connell
Director of Public Affairs
Canadian Generic Pharmaceutical Association (CGPA)
Tel: (416) 223-2333
Mobile: (647) 274-3379
Email: jeff@canadiangenerics.ca
Website: www.canadiangenerics.ca

Download this submission and background document
	Statement from the Canadian Generic Pharmaceutical Association Regarding Changes to Ontario’s Drug Systems
	Statement from the Canadian Generic Pharmaceutical Association Regarding Changes to Ontario’s Drug Systems