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Generic competition in Canada.

J W Steele1

  • 1Faculty of Pharmacy, University of Manitoba, Winnipeg, Canada.

Pharmacoeconomics
|October 5, 1994
PubMed
Summary
This summary is machine-generated.

Generic drug competition significantly impacts prescription prices in Ontario. Bill C-22, establishing the Patented Medicine Prices Review Board (PMPRB), aimed to control patented drug costs and monitor R&D spending.

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Area of Science:

  • Health Economics
  • Pharmaceutical Policy

Background:

  • Bill C-22, enacted in 1987, altered patent regulations for pharmaceuticals in Canada.
  • This legislation introduced the Patented Medicine Prices Review Board (PMPRB) to oversee drug pricing and R&D expenditures.

Purpose of the Study:

  • To evaluate the effect of generic drug competition on prescription drug prices in Ontario.
  • To assess the implications of Bill C-22 on drug pricing and the pharmaceutical industry.

Main Methods:

  • Analysis of prices for interchangeable generic drugs listed in the 1991 Ontario Drug Benefit Formulary.
  • Categorization of products based on the number of manufacturers and level of generic competition (0% to 100%).

Main Results:

  • The study examined the proportional cost reduction achieved with increasing generic market entry.

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  • Data was stratified into categories of 0%, non-maximal, maximal, and 100% generic competition for products with 2 to 6 manufacturers.

    • Conclusions:

    • The study provides insights into the pricing dynamics of generic drugs in response to market competition.
    • Findings contribute to understanding the economic impact of pharmaceutical patent policies and regulatory oversight.