Average generic drug prices in Canada declined from 63% to 36%
Entitled Generics360, this comprehensive report compares generic drug prices in Canada with those of up to eleven other industrialized countries.
Provincial generic pricing policies, including those initiated by the pan-Canadian Pharmaceutical Alliance, achieved significant price reductions in Canada.
While these declines exceeded the generic price reductions in foreign markets in recent years, prices of generic drugs remain appreciably higher in Canada than internationally.
Generics360 accounts for 81.9 percent of Canadian generic drug manufacturer sales and highlights major trends in generic drug pricing from a variety of perspectives, including reference brand-name prices, international generic-drug prices, and market size.
Average generic drug prices in Canada declined from 63% to 36% of their brand-name counterparts between 2010 and 2014.
The gap between generic drug prices in Canadian and foreign markets gradually decreased from 40% in 2010 to 19% in 2014. Most of this reduction was realized by the end of 2013.
While the weakening Canadian dollar also contributed to reducing the gap between international generic-drug prices and those in Canada, the magnitude of this change was offset by corresponding price reductions in foreign markets.
Eleven countries were included in the international price comparisons in this study: the seven countries the PMPRB considers when reviewing the prices of patented drug products (France, Germany, Italy, Sweden, Switzerland, the United Kingdom, and the United States) and four other countries the PMPRB has considered in previous reports (the Netherlands, Spain, Australia, and New Zealand).
Generics360 examines the prices of 554 leading generic drugs, representing a significant component of the generic drug market in Canada with over $1B in Canadian sales in 2014. ■