The report also noted that the sales of patented drugs which grew by 27% in 1999 have tumbled down to mere three percent growth in 2007 to C$12.3 billion. The report also points that while the prices for patented drugs declined just 0.1% on average in 2007, the Canadian prices were still the second highest of seven comparator countries.
The Fraser Institute, in its new Canada’s Drug Price Paradox 2008 report claimed that the generic prescription drugs in Canada are twice as costly as those in the US, while at the same time the Canadian prices for branded patented prescription drugs were 53% lower than American prices for the same products in 2007.
Brett Skinner, the Fraser Institute’s director of health, pharmaceutical and insurance policy research, said: “The latest data confirm that Canadians continue to pay highly-inflated prices for generic drugs relative to the US…because Canadian government policies are insulating generic drug companies and pharmacy retailers from normal, competitive free-market forces that would put downward pressure on prices for generic drugs.”
According to Mr Skinner, the Canadian policies enacted for regulating prescription drugs, cost consumers C$2.9-7.5 billion in 2007 because of inflated prices for generic drugs and inefficient substitution of medicines.
Although the sales of generic drugs rose 21% in 2007, they constitute only a mere 21% of the C$19 billion which Canada spends annually on prescription drugs, reported PharmaTimes.