Strong competition exists in the supply of many generic drugs, but the benefits of this competition are not reaching the Canadian public in the form of lower prices, according to a study released by the Competition Bureau.
The Generic Drug Sector Study finds that to compete for space on pharmacies’ shelves, generic manufacturers offer rebates or other payments to pharmacies in most provinces. Public sources and information provided by parties interviewed for the study indicate that these are on average 40% of the price the pharmacy is invoiced.
However, under the present system in most provinces, pharmacies have limited incentive to pass on these cost savings to those who pay for them: public and private plans as well as people paying out of pocket and taxpayers.
“Canadians deserve to reap the benefits of the competition we observed, “says Sheridan Scott, commissioner of competition.
Pharmaceuticals are the second-largest and fastest-growing source of healthcare costs in Canada. And several studies have found the price of prescription generics to be high in Canada compared to other countries.
To read the study, click here.
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