Province says agreement will mean savings of $300 million per year on generic drugs
The Quebec government and The Canadian Generic Pharmaceutical Association have agreed terms on a five-year agreement the province says will provide $1.5 billion in savings.
Quebec currently spends about $800 million per year on generic drugs, and Health Minister Gaetan Barrette says the new deal will mean that figure will be reduced by about $300 million annually.
Negotiations have been ongoing for months, but hit a roadblock last month when the province stated it was prepared to go to tendering to get cheaper generic prescription drugs. Central to the new deal is a clause that precludes the government from putting out tenders for generic drugs.
Explaining how the two sides ultimately came together, Barrette described how the deal would benefit all those concerned. “What will happen is a reduction in price on both the public sector and the private sector,” he said. “Quebecers will see on their bill, the price of generic drugs will go down as of this fall.''
The deal was welcomed by the province’s life and health insurance body, ACCAP-Quebec, as the group’s president Lyne Duhaime outlined her position on drug prices.
“The insurance industry has always supported lower prices for prescription drugs because this benefits members of supplementary health plans, so we are on board with the minister’s announcement,” she said.
“The details of the agreement are still confidential, but we are very hopeful that we can all work together -- the government, pharmacists and insurers – to make sure that Quebec consumers and plan sponsors all benefit from this initiative,” added Duhaime.
In terms of drug costs, Canada is second in the world behind only the United States. It is a considerable expense for drug plans, so much so that coverage is being reduced by a number of insurers. The rest of the country will therefore be keeping a close eye on Quebec and if the projected savings come to pass. According to Jim Keon, president of the Canadian Generic Pharmaceutical Association, aside from reducing costs to the insurers and the public, the deal means R&D does not have to be sacrificed in terms of bringing new drugs to market.
“Through this Agreement in Principle, the Government of Quebec is clearly recognizing the value of the generic pharmaceutical industry to Quebec's health-care system and economy, and the importance of ensuring there exist incentives for generic pharmaceutical manufacturers to invest in bringing new, cost-saving prescription medicines to Quebec and Canada," he says.
Quebec's generic pharmaceutical industry supports 4,100 jobs and creates a direct economic impact of $769 million, according to the association.
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Generics industry cautions Quebec on planned bidding regime
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Quebec currently spends about $800 million per year on generic drugs, and Health Minister Gaetan Barrette says the new deal will mean that figure will be reduced by about $300 million annually.
Negotiations have been ongoing for months, but hit a roadblock last month when the province stated it was prepared to go to tendering to get cheaper generic prescription drugs. Central to the new deal is a clause that precludes the government from putting out tenders for generic drugs.
Explaining how the two sides ultimately came together, Barrette described how the deal would benefit all those concerned. “What will happen is a reduction in price on both the public sector and the private sector,” he said. “Quebecers will see on their bill, the price of generic drugs will go down as of this fall.''
The deal was welcomed by the province’s life and health insurance body, ACCAP-Quebec, as the group’s president Lyne Duhaime outlined her position on drug prices.
“The insurance industry has always supported lower prices for prescription drugs because this benefits members of supplementary health plans, so we are on board with the minister’s announcement,” she said.
“The details of the agreement are still confidential, but we are very hopeful that we can all work together -- the government, pharmacists and insurers – to make sure that Quebec consumers and plan sponsors all benefit from this initiative,” added Duhaime.
In terms of drug costs, Canada is second in the world behind only the United States. It is a considerable expense for drug plans, so much so that coverage is being reduced by a number of insurers. The rest of the country will therefore be keeping a close eye on Quebec and if the projected savings come to pass. According to Jim Keon, president of the Canadian Generic Pharmaceutical Association, aside from reducing costs to the insurers and the public, the deal means R&D does not have to be sacrificed in terms of bringing new drugs to market.
“Through this Agreement in Principle, the Government of Quebec is clearly recognizing the value of the generic pharmaceutical industry to Quebec's health-care system and economy, and the importance of ensuring there exist incentives for generic pharmaceutical manufacturers to invest in bringing new, cost-saving prescription medicines to Quebec and Canada," he says.
Quebec's generic pharmaceutical industry supports 4,100 jobs and creates a direct economic impact of $769 million, according to the association.
Related stories:
Generics industry cautions Quebec on planned bidding regime
Cooperators announces new joint venture
