Pharmacies in Quebec vow to fight drug pricing plan

MONTREAL— The cash-strapped Quebec government has ignited a political firestorm that risks spreading across the country in its attempts to lower generic drug prices.

In its latest bid to reduce healthcare spending, the province plans to introduce a tendering system to decide which generic drugmakers would become exclusive suppliers for specific medications.

Quebec is the fourth province to take a stab at implementing such a bidding system, after unsuccessful attempts several years ago in Saskatchewan and Ontario. British Columbia launched tenders for seven drugs earlier this year.

But Quebec’s association of pharmacy owners says it is prepared to launch “a big battle” against changes it says would hurt local drug manufacturers and cost pharmacies, threatening the survival of some.

“It’s dangerous how the minister has simplistic solutions to complex problems,” said Jean Thiffault, president of the Association Québécoise des Pharmaciens Propriétaires.

He said he believes low-cost manufacturers in India or China would likely win the tenders and Quebec pharmacists have suggested alternative ways to achieve savings that don’t run the risk of leading to shortages or issues with quality.

Quebec’s proposed changes would allow the health minister to issue a call for tenders from accredited drug manufacturers or wholesalers.

The current formula results in high profits on some drugs and minimal or no profits on others, said Keith Howlett of Desjardins Capital Markets, who described Quebec’s legislation as a “surprise proposal.”

He said it would hurt Jean Coutu’s Pro Doc generic manufacturing business. Pro Doc is the legal manufacturer of many of the most profitable drugs.

Jean Coutu declined to comment.