Dispute Between Generic Drug Manufacturers and the Ontario Government Now Involves Pharmacists

As previously reported in E-TIPS®, political pressure has been growing to move towards lower pricing of generic drugs in Canada ("National Pharmaceuticals Strategy Report: Concern about Generic Drug Prices in Canada", October 11, 2006, Vol 5, No 8), with the Ontario Government already having taken action via the enactment of Bill 102 to revise the basis for reimbursement and drug interchangeability within Ontario's drug plan ("Generic Manufacturers Call for Review of Ontario Regulations Reducing Drug Prices", October 25, 2006, Vol 5, No 9). The growing dispute has now prompted Ontario pharmacists to join the fray. Some druggists claim they are already buying certain generic drugs from manufacturers at prices higher than those at which the druggists are being reimbursed by the Ontario government. In addition to the price capping provided for in Bill 102, druggists are objecting to the new ban on drug companies paying rebates to pharmacies for shelf space. One pharmacist representative claims that this could have an impact on overall Canadian pharmacy revenues by as much as several hundred million dollars, something which he claims the industry cannot absorb without adverse impact on inventories and the ability of druggists to meet patient demand. In another legislative event involving the industry, an Opposition Liberal MP has introduced in the House of Commons a private member's bill (Bill C-378) giving the Cabinet the power to limit bulk drug exports, in anticipation of the US Government permitting such activity. Unless this initiative is adopted by the Government, it is unlikely to become law. For the reaction of the Canadian Pharmacists Association to Bill 102, go to this page and follow the links re Bill 102: http://makeashorterlink.com/?P20123F1E and for the Association's reaction to Bill C-378, see: http://makeashorterlink.com/?F51125F1E For a recent article in The Globe and Mail, visit: http://makeashorterlink.com/?N12123F1E Summary by: Michael Migus