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Agreement in Principle Between the Government of Quebec and Canadian Generic Pharmaceutical Association (CGPA)

Montreal, July 16, 2017 – The following is a statement by Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA), regarding the Agreement in Principle announced today between the Government of Quebec and CGPA.

“The Government of Quebec and the Canadian Generic Pharmaceutical Association have reached an Agreement in Principle that will provide substantial savings for the health-care system and help ensure the ongoing viability of the generic pharmaceutical industry, as well as the continued and future supply of cost-saving generic pharmaceutical products.

The Agreement in Principle will provide the Government of Quebec its targeted savings of $1.5 billion over the term of a five-year agreement through further price discounts and the launch of new cost- saving generic prescription medicines.

A key component of the Agreement in Principle is that the Government of Quebec has agreed not to tender for generic prescription medicines over the five-year term of the Agreement. CGPA believes that this negotiated Agreement is a much better path forward for taxpayers, patients, health-care providers and the generic pharmaceutical industry than a risky tendering system.

Through this Agreement in Principle, the Government of Quebec is clearly recognizing the value of the generic pharmaceutical industry to Quebec’s health-care system and economy, and the importance of ensuring there exist incentives for generic pharmaceutical manufacturers to invest in bringing new, cost-saving prescription medicines to Quebec and Canada.”

The Agreement in Principle calls for a five-year term commencing October 1, 2017. Details on the implementation will be finalized in the coming weeks.

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 more than 76 percent of all prescriptions but account for account for less than 22 percent of the $41.5-billion Canadians spend annually on prescription medicines.

For more information, please contact :

Jeff Connell,
Vice President, Corporate Affairs

Tel: (647) 274-3379