Medicine prices are actually decreasing

Re: Canadians need better drugs, not larger bureaucracy — March 12

Dr. D. Wayne Taylor’s column contains erroneous information regarding prices of generic prescription medicines in Canada.

Prices of generic medicines in Canada have decreased, and continue to drop, and are not increasing as Dr. Taylor writes.

According to the Patented Medicine Prices Review Board (PMPRB), Canada’s generic drug prices decreased by an average of 48 per cent between 2010 and 2015. This decrease was greater than the generic price declines among other countries.

In addition, as of April 1, 2018, the prices of nearly 70 of the most commonly prescribed drugs in Canada will be reduced by 25 per cent to 40 per cent, resulting in overall discounts of up to 90 per cent off the price of their brand-name equivalents as the result of a new five-year initiative announced on Jan. 29 by the pan-Canadian Pharmaceutical Alliance (pCPA) and Canadian Generic Pharmaceutical Association (CGPA).

It is estimated that this new initiative will save an additional $385 million in the first year, and up to $3 billion over the next five years through a combination of price reductions and the launch of new generic drugs. Savings to patients and employers are expected to match or exceed those achieved by Canadian governments.

According to data from IQVIA, the leading source of prescription drug sales information, generic prescription medicines are dispensed to fill more than 70 per cent of all prescriptions in Canada but account for only 22 per cent of the $27.5 billion Canadians spend annually on prescription medicines. IQVIA data also shows that the average price of a generic prescription in Canada is only $20.53 while the average price of a brand-name prescription is $101. As this data clearly illustrates, generic prescription medicines are providing excellent value for Canadians and are a key to the ongoing sustainability of government and private sector drug benefit plans.

Jeff Connell

Vice President, Corporate Affairs Canadian Generic Pharmaceutical Association

Toronto