Manufacturers of generic drugs say a federal study showing that Canada has higher generic drug prices than 8 other countries is flawed.
The study, conducted by the Patented Medicine Prices Review Board (PMPRB) for the federal/territorial ministers of health, states that Canadians pay between 21% and 51% more for 100 top-selling generic drugs than consumers in 8 other countries.
The findings could hold implications for both drug companies and the country. Prices of generic drugs are not regulated nationally in Canada, although some drug-benefit plans set limits. (In Ontario, the cost of a generic drug cannot exceed 70% to 90% of the price of the equivalent brand-name product.) Western European countries employ direct price controls, while New Zealand issues tenders that can drive prices down.
The Canadian Generic Pharmaceutical Association (CGPA) responds that the price of generic drugs in Canada is lower than in the US and similar to prices in comparable countries such as the United Kingdom and Germany. It has sent a series of questions about the report, A study of the prices of the top selling multiple source medicines in Canada, to the PMPRB.
“I think the data [are] slanted,” says President Jim Keon. “They didn't push to get the real US prices.” A CGPA study using data from IMS Health found that 28 top-selling drugs cost 28% less in Canada in 2002 than in the US.
But even if the US is excluded, the PMPRB study still found that Canadian prices are 49% higher than the international median.
Overall, the report determined that generic drugs available from more than 1 manufacturer are 24% cheaper in Germany, 26% in the UK and 32% in Australia. Of the 9 countries surveyed, only Switzerland's prices were higher.
Dr. Ron Corvari, director of policy and economic analysis for the PMPRB, refused to speculate why prices are higher in Canada. He said more research is needed to determine whether market size, a smaller number of generic-drug competitors or provincial/federal policies are part of the problem.
Generic drugs accounted for an estimated 40% of Canadian prescriptions filled in 2000, and for about 11% of total pharmaceutical sales. In the US, they account for about 20% of sales. — Barbara Sibbald, CMAJ