Generic Pharmaceutical Industry Supports Health Council of Canada Findings on
Drug Companies' Influence on Prescribing

TORONTO, Sept. 27 /CNW/ - Canada's generic pharmaceutical industry supports recommendations in the report released today by the Health Council of Canada urging governments to take action to offset the marketing of brand-name drugs to health-care professionals.

"The key cost driver for public and private drug plans in Canada is the rapid uptake of newer, expensive, patented medicines which, unfortunately, may not be more effective or safer than established, proven drugs that are already on the market and available at much lower costs," said Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA).

The Health Council of Canada report, Decisions, Decisions: Family Doctors as Gatekeepers to Prescription Drugs and Diagnostic Imaging in Canada, notes that prescribing decisions can be heavily influenced by drug company representatives who visit physicians with the intent of influencing their prescribing practices. The report estimates that about 6,000 drug company representatives visit Canadian doctors on a regular basis to promote their company's drug products.

"Decisions regarding which drug should be prescribed to a patient, or if a drug treatment is appropriate at all, should be made based on what is best for the patient, not on information provided by the companies selling the drugs," Keon said. "We must never forget that drug companies are not in the educations business, they are in the business of selling drugs."

In Canada, generic drugs are dispensed to fill fully 56 percent of prescriptions yet account for only 25 percent of the $23-billion Canadians spend annually on prescription drugs. The price of generic drugs in Canada also includes significant support for the services community pharmacies provide to patients. Keon said that, despite these facts, governments and payers have dedicated an inordinate amount of attention to generic drug prices and pharmacy compensations while virtually ignoring the main cost driver for their drug plans: new, expensive patented medicines.

"Approximately 75 cents of every dollar spent on prescription drugs in Canada is spent on brand-name drugs. Clearly, reducing generic drug prices and support for community pharmacies will not address the primary cost driver for drug benefit plans," he said.

The CGPA supports the Health Council of Canada's recommendations that government's increase the use of programs such as academic detailing in order to provide unbiased education to physicians about the best evidence on the value of specific medication, and how these medicines should be prescribed to safely and effectively improve patient outcomes. The Council's report also recommends that information be provided to physicians on drug prices, so that they can make more cost-effective decisions for their patients.

The latest annual report from the federal government's Patented Medicine Prices Review Board (PMPRB) found that the vast majority of new drugs introduced in Canada in 2009, "provide moderate, little or no therapeutic advantage over comparable medicines."

About the Canadian Generic Pharmaceutical Association

The Canadian Generic Pharmaceutical Association (CGPA) represents Canada's generic pharmaceutical industry. The industry plays an important role in controlling health-care costs in Canada. Generic drugs are dispensed to fill 56 per cent of all prescriptions but account for only 25 per cent of the $23-billion Canadians spend annually on prescription medicines.

For further information:

Jeff Connell
Director of Public Affairs
Canadian Generic Pharmaceutical Association (CGPA)
Tel: [phone]
Mobile: [phone]
Email: [email protected]
Website: www.canadiangenerics.ca