Healthy Skepticism Library item: 1744

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Publication type: news

Keon J.
Prescription medicine: "Think of the needs of tax payers before those of the multinationals"
Canadian Drug Manufacturers Association 2002 Apr 3

Full text:

MONTREAL, April 3 /CNW/ – “Today’s disclosure of the study on the
financial results of brand name multinational pharmaceutical companies by the
UQAM Chair for Economic Studies is yet another reminder that the costs of
brand-name drugs have reached record levels,” according to the Canadian Drug
Manufacturers Association (CDMA) President, Mr. Jim Keon, whose group
represents the generic industry. These results are similar to those of a study
sponsored by the CDMA in 1998 by the same Chair that pointed to the
astronomical profits enjoyed by the large multinational pharmaceutical
companies.” It must be emphasized that an analysis of RAMQ data for 2001 and made
public by the CDMA last November revealed that because Quebecers did not use
generics, they were forfeiting direct savings of $18.7 million per year. “And,
explained Mr. Keon, our analysis only considered 12 popular medications. In
total, it is $25 million per year that citizens and the government can save,
if they request generics as soon as they hit the pharmacy. The increased use
of generics is obviously a partial but important solution to the serious
problem of the deficit of the public drug plan.” The Government of Quebec is the only government in Canada that does not
systematically reimburse only the cost of the least expensive medication for
those persons enrolled in the public insurance plan. The wealthy
multinationals in Quebec reap the benefits of Quebec regulations that extend
commercial benefits beyond 20 years, for medicines for which generic
substitutes are available. “The time has now come, concluded Mr. Keon, to review the regulations and
think of the needs of tax payers rather than those of multinationals.” Also, it is worthwhile noting that generic drugs account for 14% of
prescription drug spending in Canada versus only 10% in Quebec. If use of
generics in Quebec was the same as that in the rest of Canada, QUEBECERS COULD
THEN BENEFIT FROM AN EXTRA $100 MILLION IN SAVINGS ON THEIR DRUG PURCHASES.

For further information: (514) 393-3728; Source: Jim Keon, President,
Canadian Drug Manufacturers Association (CDMA), (416) 223-2333