Canadian Industry Group Calls for Increase in Generic Drug Use

In one year Canadians could save $700 million on the cost of prescription drugs if the use of generic drugs were increased to U.S. levels, the Canadian Generic Pharmaceutical Association (CGPA) said in response to the 2006 Canadian prescription drug sales data released by IMS Health.

"We are encouraging governments, employers that sponsor drug plans for their employees and all Canadians to increase their use of lower-cost generic medicines to match levels in the United States where generic drugs are dispensed to fill 63 percent of all prescriptions," Jim Keon, president of CGPA, said.

IMS Health data shows that in 2006 generic drugs were dispensed to fill 45 percent of all prescriptions in Canada yet accounted for only 18 percent of the $18 billion spent on prescription medicines, CGPA said. The sales figures also show that sales of generic pharmaceutical products increased by 13.6 percent in 2006.

Keon said that increasing the use of lower-cost generic medicines would not only be good for the healthcare system, but also for Canada's economy. "Unlike most brand-name drugs, which are shipped into Canada, the vast majority of the generic drugs sold in Canada are made right here."