New study calls for action to protect Canada’s prescription drug supply


Necessary measures to improve domestic production and the international supply chain

TORONTO, February 7, 2022 /CNW Telbec/ – A new study released today calls on governments Canada take action to ensure Canadians’ access to prescription drugs by strengthening from Canada domestic manufacturing of generic pharmaceuticals and the international supply chain.

“Generic prescription drugs are dispensed to fill nearly three-quarters of all prescriptions in Canada,” noted Jim Keon, President of the Canadian Generic Pharmaceutical Association (CGPA). “The COVID-19 pandemic has demonstrated that the security of supplying Canadians with needed medicines can no longer be taken for granted by governments and policy makers. We must act to ensure that we put our industry and the country’s drug supply on a more stable footing. foot.”

The study, by consulting firm EY Canada commissioned by the CGPA, reports that global supply chains have become increasingly complex, introducing risks, disruptions and shortages of prescription drugs. These risks, such as export restrictions, disruptions in international transport and dependence on foreign partners, underscore the importance of measures to support the manufacture of prescription drugs in Canada and secure import channels for drugs and inputs needed for their production.

The generic market in Canada faces downward pricing pressure due to rising labor, land, transportation costs and a complex regulatory regime. Together, these elements increase the fragility of the domestic industry.

According to data from the EY Canada report, between 2019 and 2021, CGPA member companies produced – by manufacturing or importing – 6,225 generic pharmaceutical products for Canada, excluding active pharmaceutical ingredients (API). About 44%, or 2,743, of these products were produced domestically and 56%, or 3,482, were imported finished products. Since 2019, however, there has been a steady decline in the total number of locally manufactured drugs, from 1,061 in 2019 to 700 in 2021. In addition, almost all APIs used to manufacture generic drugs in Canada are imported from 45 countries around the world, with more than 60% of APIs coming from India and China.

“With increasing pressures on generic drug costs, manufacturers have been forced to optimize their product portfolios, which affects the diversity of drugs that can be produced and supplied to Canadians,” Keon said. “To promote and support manufacturing in Canadathe generic pharmaceutical industry needs appropriate supports and incentives, as well as reduced barriers to market entry.”

Throughout the Covid-19 pandemic, Canadian generic pharmaceutical companies have managed to overcome significant challenges to successfully avoid catastrophic shortages of prescription drugs. Governments and stakeholders must now take action to strengthen the domestic industry and how best generic prescription drugs are provided to Canadians.

Key recommendations from the EY Canada report include:

  • Long-term supports and strategies to promote and encourage onshore prescription drug importation and manufacturing capabilities to ensure the sustainable supply of a wide range of generic drugs and the economic benefits associated with a strengthened domestic industry.
  • Better alignment with key international regulatory bodies such as the European Medicines Agency (EMA) and the US Food and Drug Administration (FDA).
  • Incentives that encourage companies to offer new generic drugs to Canadians, such as subsidies to meet the high costs of domestic production and importation, including labour, operations, facilities and transport.
  • Tax and other incentives to support domestic manufacturing (for APIs, biosimilars and other pharmaceuticals).
  • Negotiating multilateral trade agreements that promote generic pharmaceutical supply chain security to ensure continued access to APIs, finished-dose products, and elements needed to support domestic production.
  • Appropriate pricing and sourcing strategies that balance support for domestic manufacturing with the need for a strong international supply chain.
  • Developing coordinated approaches and strategies for emergency medicines planning, including supporting a stockpile of critical medicines and expanding further by identifying a more comprehensive list of essential medicines to prepare for future health emergencies public.

About the Canadian Generic Pharmaceutical Association
The Canadian Generic Pharmaceutical Association (CGPA) represents from Canada the generic pharmaceutical industry. Industry plays an important role in controlling healthcare costs in Canada. Generic drugs are dispensed to fill nearly 74% of all prescriptions, but account for less than 21% of the $34 billion Canadians spend annually on prescription drugs.

SOURCE Canadian Generic Pharmaceutical Association (CGPA)

For further information: Jeff Connell, Vice President, Corporate Affairs, Canadian Generic Pharmaceutical Association (CGPA), Tel. : (647) 274-3379, Email: [email protected]; Website:


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