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Release of Canadian Prescription Drug Sales Information Highlights Increasing Value of Generic Medicines

Savings at risk due to European Union’s proposed changes to Canada’s drug patent system

Toronto, May 5, 2011 – The release of Canadian prescription drug sales information by the Canadian Institute for Health Information (CIHI) demonstrates that generic prescription medicines are making an even greater contribution to sustainable health care in Canada, Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA), said today.

"As today’s report from CIHI highlights, generic drugs are providing excellent value for Canadians, and those savings are increasing,” Keon said. “In fact, generic drugs are the only component of Canadian health care where costs are actually decreasing."

The CIHI report noted that the drop in pharmaceutical spending in Canada is due to generic pharmaceutical companies investing in bringing new cost-saving prescription drugs to market, and to reductions of retail prices through provincial drug reforms.

"As prices come down, the next step for ensuring the ongoing sustainability of public and private drug benefit plans in Canada is to increase the use of cost-saving generics medicines," said Keon.

In the United States, generic drugs are dispensed to fill fully 75 percent of all prescriptions. If generic utilization in Canada increased to levels in the United States, Canadians would save up to $3-billion in the first year alone.

Keon cautioned, however, that savings achieved through new generic product launches and provincial drug reforms could be wiped out by proposals from the European Union (EU), put forward on behalf of brand-name drug companies as part of negotiations for a comprehensive economic and trade agreement (CETA), to prolong periods of market exclusivity for brand-name drugs in Canada.

A February 2011 study by Professor Aidan Hollis of the University of Calgary and Paul Grootendorst of the University of Toronto titled, The Canada-European Union Comprehensive Economic & Trade Agreement: An Economic Impact Assessment of Proposed Pharmaceutical Intellectual Property Provisions, estimates that the adoption of the EU’s drug patent system proposals would add nearly $3- billion to Canada’s prescription drug bill.

The generic pharmaceutical industry supports the Government of Canada’s efforts to increase trade with other jurisdictions,” said Keon. "The pharmaceutical intellectual property proposals tabled by the EU, however, are not intended to eliminate trade barriers, as brand-name pharmaceutical products from the EU already have unfettered access to the Canadian market. These proposals are simply intended to increase profits for brand-name drug companies at the expense of Canada’s health-care system."

About the Canadian Generic Pharmaceutical Association
The Canadian Generic Pharmaceutical Association (CGPA) represents Canada’s generic pharmaceutical industry. The industry plays an important role in controlling health-care costs in Canada. Generic drugs are dispensed to fill 57 per cent of all prescriptions but account for only 26 per cent of the $22-billion Canadians spend annually on prescription medicines.

For more information, please contact:

Jeff Connell
Vice President, Corporate Affairs
Canadian Generic Pharmaceutical Association (CGPA)
Tel: (416) 223-2333
Mobile: (647) 274-3379
Email: jeff@canadiangenerics.ca
Website: www.canadiangenerics.ca

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	Release of Canadian Prescription Drug Sales Information Highlights Increasing Value of Generic Medicines
	Release of Canadian Prescription Drug Sales Information Highlights Increasing Value of Generic Medicines