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CGPA Statement on the final report from the Advisory Council on the Implementation of National Pharmacare

Toronto, June 12, 2019 – The following is a statement by Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA), on the Final Report of the Advisory Council on the Implementation of National Pharmacare:

“The Canadian Generic Pharmaceutical Association and its member companies welcome the recommendations in today’s final report from the Advisory Council on the Implementation of National Pharmacare for increasing the use of cost-saving but equally effective generic prescription medicines.

Making prescription drugs more affordable and accessible is the key value proposition of Canada’s generic pharmaceutical industry.

In particular, CGPA is pleased with recommendations for mandatory generic substitution policies to encourage patients and prescribers to choose the most cost-effective therapies, and increase patient and prescriber awareness about the equivalency of generic and brand-name prescription medicines.

CGPA estimates that for every one percent increase in the use of generic medicines, Canadians save an additional $586-million. In the United States, for example, generics are dispensed to fill 90 percent of all prescriptions. If the use of generic medicines in Canada was equal to U.S. levels, Canadians would have saved an additional $11-billion in 2018.

Strategies such as charging lower copayments for generic equivalents and addressing the negative impact of brand-name coupon cards are also important initiatives, and CGPA is pleased that the council has stated its support for these measures.

Generic prescription medicines are providing tremendous value and savings for Canadians, largely due to CGPA’s initiative with the pan-Canadian Pharmaceutical Alliance (pCPA).

Data released on May 29, 2019 by the federal government’s Patented Medicine Prices Review Board (PMPRB) shows that in 2018 Canadian prices for generic prescription medicines dropped to five percent below average or mean prices in comparator countries.

The PMPRB’s data also shows that, since 2007, the average price of generic prescription medicines in Canada has fallen by nearly 60 percent, with prices of some of the top-selling generics dropping by an average of 80 percent. While prices of generic medicines have fallen in markets around the world, Canada has experienced the steepest decline of all OECD countries.”

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