B.C. to end generic drug pricing agreement
B.C. is ending its generic drug pricing agreement with the B.C. Pharmacy Association and the Canadian Association of Drugs Stores on April 1, Health Minister Mike de Jong announced Wednesday.
Expected savings example:
- Atypical 30-day prescription of the cholesterol-lowering drug Lipitor costs $55, not including standard pharmacy fees.
- The generic version of the drug costs 40 per cent of the brand name cost, or about $22.
- Through the draft legislation, the province aims to lower the generic drug price to 25 per cent, or $14.
Source: B.C. Health Ministry
De Jongsays the pharmacy industry has failed to deliver the $46 million in savings promisedunder a 2010 agreementwith the province.
"Our 2010 agreement on generic drugs promised significant savings for B.C. taxpayers and the health care system, but much of those savings did not materialize," he said.
"At this time, we do not have confidence we will see the savings promised through an agreement with the B.C. Pharmacy Association and the Canadian Association of Chain Drug Stores. We need those savings now, more than ever, and so I have asked my staff to draft legislation."
Under the existing agreement, generic drugs are supposed to cost 40 per cent of the brand name price. That falls to 35 per cent in April.
The province plans to introduce legislation this spring to lower that to 25 per cent in 2013, saying the savings will be passed on to consumers.
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