17 July 2017 11:27
Photo : Unsplash
The Government of Quebec and thecanadian generic pharmaceutical Association (CGPA) have reached an agreement in principle that allows the government to realize savings of $ 1.5 billion over five years, commencing October 1, 2017.
Jim Keon, president of CGPA, welcomes the agreement announced yesterday. «[…] [This] agreement allows for substantial savings for the health system while ensuring the sustainability of the generic industry and the stable supply of generic drugs at a lower cost. «
Not tendering for generic prescription
In addition, the agreement allows to avoid the tendering process, as stipulated in the Law aimed at reducing the cost of some medications covered by the basic prescription drug insurance Plan by allowing the use of a tendering procedure.
«[The] key element of this agreement-in-principle, the Government of Québec has agreed not to make use of tenders for generic drugs prescription for five years of the agreement. CGPA believes that this negotiated agreement is a better solution for taxpayers, for patients, for health professionals, as well as for the generic industry that a process as risky bidding, » added Mr. Keon.
Significant cost savings for taxpayers
«I am very happy to announce that our discussions have borne fruit and that we have entered into an agreement constructively with the generic drug industry. This will result in significant cost savings for taxpayers, which will be reinvested in the health system, to improve accessibility to care and services. By this agreement, the Government of Québec also recognizes the contribution of the generic drug industry in the québec economy and its contribution to our health system, » said Gaétan Barrette, minister of Health, by way of a press release.
Economic impact of 843 M$ per year
The Fédération des chambres de commerce du Québec (FCCQ) applauds the agreement-in-principle agreed, and stressed the importance of savings for the health system, which will maintain » market conditions in order to avoid shortages is complex, the risk of price increase in delay and reduction of investment in the sector. «
The FEDERATION adds that the agreement will consolidate the significant economic impact of the sector, since the generic drugs generate economic benefits of $ 843 million per year, representing 4 000 direct jobs and the sector has invested nearly $ 150 million over the past five years.
«Today’s agreement creates a predictable environment and a competitive, conducive to investment in research and development in this innovative manufacturing sector, which improves the trade balance of Québec, with exports accounting for two-thirds of the turnover of enterprises,» underlined Stéphane Forget, president and CEO of the FCCQ.