Issue link: http://clhia.uberflip.com/i/406567
23 THEREFORE, THE CLHIA RECOMMENDS THAT: • WHERE A BRAND DRUG IS CURRENTLY ON A PROVINCIAL FORMULARY AND A GENERIC HAS BEEN APPROVED AS BIO-EQUIVALENT WITH THE CANADIAN BRAND REFERENCE PRODUCT BY HEALTH CANADA, THAT THE GENERIC BE AUTOMATICALLY INTERCHANGEABLE WITHOUT THE NEED FOR ADDITIONAL REVIEW BY THE PROVINCES AND AUTOMATICALLY LISTED. b.3.3 Off-Formulary Pricing and Caps There have been a number of initiatives introduced in the provinces to cap prices of generic drugs as a percentage of their brand equivalent. These initiatives have been effective in containing costs in recent years and we applaud governments on these efforts. There are concerns, however, that generally the caps on generic prices apply only to those generic drugs that are listed on the public, provincial formulary. This creates an incentive for generic drugs to forgo listing on the provincial formulary in order to charge higher prices to private payers and those paying out-of-pocket in the province. This also deprives the public payers of the ability to benefit from the reduced cost of the generic alternative. THEREFORE, THE CLHIA RECOMMENDS THAT: • REGARDLESS OF WHETHER A DRUG IS LISTED ON A PROVINCIAL FORMULARY, GENERIC PRICE CAPS APPLY TO ALL GENERIC DRUGS APPROVED FOR SALE IN THEIR RESPECTIVE PROVINCE. b.3.4 Clarity on Subsequent Entry Biologics (SEB) Approval Process The introduction of SEBs is potentially an important market trend going forward from an affordability and sustainability perspective. Biologic drugs often provide significant improvement in health outcomes and can have dramatic and life altering impacts for patients.