Benefiting from generic drug competition in Canada : Pour une concurrence avantageuse des médicaments génériques au Canada : préparons l'avenir

The recommendations for private payer and provincial drug plans are a follow-up to the Canadian Generic Drug Sector Study released by the Competition Bureau in October 2007, in response to widespread concern that generic drug prices in Canada were high in comparison to those in other countries. [...] In 2006-2007, the Competition Bureau (the “Bureau”) initiated a study into the competitive framework for generic drugs in the country to examine this issue.2 In October 2007, the Bureau released the Canadian Generic Drug Sector Study (the “Generics Study”).3 The Study found that many generic drugs are subject to a high level of competition in Canada with the end of patent protection often leading [...] Headed by the Commissioner of Competition, the Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. [...] For most generics, this amounted to about 63% of the interchangeable brand reference product formulary price.6 The TDSPA reduced the maximum price reimbursed by Ontario Public Drug Programs (OPDP) for most generic drugs to 50% of the interchangeable brand product price.7 The Generics Study reported that the TDSPA led to the establishment of a two- tier pricing system for generic drugs. [...] To examine this matter, the Bureau obtained public and private drug plan data for the 10 top selling generic chemicals in Canada for the period from July, 2006 to June, 2008, accounting for 36% of Canadian generic drug sales.8 Two of the drugs in the sample are part of the first wave of generic “competitive agreements” in Ontario, 6. A maximum price of 70% of the brand reference product formulary