CLHIA-ACCAP

CLHIA Report on Prescription Drug Policy

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19 and private payers. Since then, all provinces in Canada have aggressively pursued lower generic drug prices not only for their respective public plans, but private payers too. OVERVIEW OF PROVINCIAL GENERIC PRICE CAP ANNOUNCEMENTS 45% AB 40% 35% B.C. NS/SK NL/NB/AB/PEI 30% 25% ON B.C. NL/NB 20% B.C. 18% AB/PanCdn* 10% 2009 2010 2011 2012 2013 * Pan Canadian purchase agreement set cap for all provinces, except Quebec, at 18% for 6 top selling generics We applaud the provinces for the leadership role they have played in this regard. Indeed, this, coupled with the recent expiry of patents on a number of blockbuster drugs, has resulted in important savings for both provincial governments and private payers. b.3.1 Reducing Need for Costly Litigation The process for generic drugs to enter the market in Canada is not straightforward, however. The vast majority of generic drugs enter the market as a result of litigation brought by generic drug manufacturers against patents. In fact, 8 of the 10 top-selling generic drugs in Canada came to market through generic drug companies challenging patents, which the Canadian courts have determined are invalid or non-infringed. 11 11 Canadian Generic Drug Association.

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