The pCPA and CGPA have negotiated a renewed three-year generics initiative
by CM staff
The new initiative is effective October 1, for a period of three years with the option to extend by an additional two years.
TORONTO — The pan-Canadian Pharmaceutical Alliance (pCPA), consisting of participating federal, provincial, and territorial government public drug plans and the Canadian Generic Pharmaceutical Association (CGPA) have successfully reached an agreement on a renewed three-year pricing initiative for generic medicines that will help public drug plans continue to control their costs.
This new agreement provides a stable and predictable environment for generic manufacturers, who help fill approximately 75 per cent of all prescriptions across Canada, to continue launching new drugs. Continued access to new generics will help public drug plans maintain their costs and provide savings for Canadians who use prescription drugs in participating public drug plans and private drug plans.
This post-pandemic agreement constitutes an achievement since it maintains the current pricing and savings achieved in previous negotiated agreements and provides additional savings for future new generics at a time of inflation.
To this end, the price of new generics entering into the pan-Canadian Tiered Pricing Framework will drop automatically to 55 per cent of brand reference price after three months for situations where there is only one generic marketed in Canada. The prior agreement provided for a listing at 75 to 85 per cent of brand reference price for new generics.
The new initiative is effective October 1, for a period of three years with the option to extend by an additional two years.
Previous joint efforts between pCPA and CGPA have resulted in savings of over $4 billion to participating drug plans over the past ten years.
