Generic competition in Canada

This study was designed to assess the potential impact of generic drug competition on prescription prices in Ontario, Canada, and the costs and benefits of the passage of Bill C-22 by the Canadian federal government. Bill C-22, passed in 1987, extended the period during which a patented drug is exempt from compulsory licensing by a generic drug manufacturer, and created the Patented Medicine Prices Review Board (PMPRB). The purpose of the PMPRB is to 'ensure that the prices of patented medicines charged by patentees are not excessive' and to 'report annually on the ratios of research-and-development expenditures to sales for individual patentees and for the patented pharmaceutical industry as a whole'. Lexchin analysed prices in the 1991 Drug Benefit Formulary of Ontario for interchangeable products which were manufactured by more than one company. He also noted the best available price for the highest and lowest priced versions, and the number of manufacturers of that product. Products were then grouped according to the number of manufacturers, and the price of the least expensive version of each product was expressed as a percentage of that of the most expensive version (i.e. the proportional cost). For products marketed by 2 to 6 companies, the data were further subdivided into 4 categories representing 0%, non-maximal, maximal and 100% generic competition.(ABSTRACT TRUNCATED AT 250 WORDS)