Prices for almost 70 generic drugs dropping by 25-40%

On April 1st the prices on the ingredient cost for almost 70 of the most common generic drugs will drop 25-40%. These drugs include those used to treat high blood pressure, high cholesterol and depression.

The discounts are based on an agreement between the pan-Canadian Pharmaceutical Alliance (pCPA)- which represents provinces, territories and federal government – and the Canadian Generic Pharmaceutical Association (CGPA). Under the new agreement, provincial and territorial governments agreed not to pursue tendering for participating drug plans over the five-year term. This agreement will more than triple the number of drugs that were discounted under the previous generics initiative.

The groups said since generic drugs covered by the agreement are manufactured by multiple companies, it will help to ensure a stable supply for Canadian patients.

Why is this significant?

The price drop applies to both public and private plans.

Plan sponsors looking for ways to manage their drug plan may want to look at applying generic substitution. For these plans since pharmacists typically offer a generic drug when it is identified as interchangeable by the province, the plan member experiences minimal disruption.

Source:
Manulife Repsource
CTV News – Prices of nearly 70 commonly prescribed generic drugs to drop under new deal
CBC News – Generic drug industry agrees to cut prices up to 40% in a 5-year deal with provinces