Generic drug industry agrees to cut prices up to 40% in 5-year deal with provinces

Public drug plans agree not to ask for open tenders in bid to get drug costs lower

(CBC News) — Canada’s generic drug industry has agreed to cut prices 25 per cent to 40 per cent for provincial/public drug plans, in exchange for suspending open tenders for five years.

The pan-Canadian Pharmaceutical Alliance made the announcement on Monday on behalf of participating federal, provincial, and territorial public drug plans and the Canadian Generic Pharmaceutical Association.

“As of April 1, 2018, the prices of nearly 70 of the most commonly prescribed drugs in Canada will be reduced by 25 per cent to 40 per cent, resulting in overall discounts of up to 90 per cent off the price of their brand-name equivalents,” the groups said in a statement.

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The announcement follows a similar agreement announced by Quebec’s government in July 2017. The province’s health minister said Quebec spends about $800 million annually on generic drugs, and that the agreement will mean a decrease of more $300 million a year, which works out to a roughly 40 per cent reduction. (…)

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