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Challenges and innovations: generic drug
         pricing and availability


    Jody Shkrobot, CPhA Past President
              February 26, 2013


                          Canadian Pharmacists Association
Safe and effective medication distribution
systems need to be maintained




 Manufacturer   Wholesaler    Pharmacy       Patient




                              3rd Party
                    Insurer    Payer      Government
Generic drug prices are dropping; Revenues used to
 support patient care activities are also dropping

Province                        Current Generic Drug Pricing                                       Target Generic Drug Pricing*

British Columbia                35% of brand price                                                 25% of brand price April 1, 2013
                                                                                                   20% of brand price April 1, 2014
Alberta                         35% of brand price
Saskatchewan                    35% of brand price
Manitoba                        Estimated at 60% (but varies with UMA)
Ontario                         25% of brand price
Quebec                          All generic drugs must be sold at the best available price in
                                Canada. However, first generic drug are reimbursed at 60% of
                                brand price. For a generic drug that has two manufactures,
                                the generic price is set at 54% of brand drug price.
New Brunswick                   35% of brand price
Nova Scotia                     35% of brand price
Prince Edward Island            35% of brand price
Newfoundland & Labrador         40% of brand price                                                 35% of brand price by April 1, 2013
*As of April 1, 2013, the cost of 6 generic molecules will fall to 18% of brand price across the country (except Quebec)
** Source: CACDS provincial data compilation
At the same time, demands on the pharmacist
has increased
Key Take Away Messages

• Although lower generic pricing may improve financial access
  to medications, the squeezed community pharmacy business
  model is making it more difficult for pharmacists to provide
  the necessary care to their patients
• Enhancements to medication management services will
  promote better medication utilization and reduce errors,
  resulting in better care to patients and reduced cost to the
  health care system
• We need to look at the whole patient and the whole health
  care system
Thank you



     Canadian Pharmacists Association
           www.pharmacists.ca
          info@pharmacists.ca
             1-613-523-7877

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Jody Shkrobot - Generic Drug Pricing and Availability

  • 1. Challenges and innovations: generic drug pricing and availability Jody Shkrobot, CPhA Past President February 26, 2013 Canadian Pharmacists Association
  • 2. Safe and effective medication distribution systems need to be maintained Manufacturer Wholesaler Pharmacy Patient 3rd Party Insurer Payer Government
  • 3. Generic drug prices are dropping; Revenues used to support patient care activities are also dropping Province Current Generic Drug Pricing Target Generic Drug Pricing* British Columbia 35% of brand price 25% of brand price April 1, 2013 20% of brand price April 1, 2014 Alberta 35% of brand price Saskatchewan 35% of brand price Manitoba Estimated at 60% (but varies with UMA) Ontario 25% of brand price Quebec All generic drugs must be sold at the best available price in Canada. However, first generic drug are reimbursed at 60% of brand price. For a generic drug that has two manufactures, the generic price is set at 54% of brand drug price. New Brunswick 35% of brand price Nova Scotia 35% of brand price Prince Edward Island 35% of brand price Newfoundland & Labrador 40% of brand price 35% of brand price by April 1, 2013 *As of April 1, 2013, the cost of 6 generic molecules will fall to 18% of brand price across the country (except Quebec) ** Source: CACDS provincial data compilation
  • 4. At the same time, demands on the pharmacist has increased
  • 5. Key Take Away Messages • Although lower generic pricing may improve financial access to medications, the squeezed community pharmacy business model is making it more difficult for pharmacists to provide the necessary care to their patients • Enhancements to medication management services will promote better medication utilization and reduce errors, resulting in better care to patients and reduced cost to the health care system • We need to look at the whole patient and the whole health care system
  • 6. Thank you Canadian Pharmacists Association www.pharmacists.ca info@pharmacists.ca 1-613-523-7877