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Winnipeg Free Press - PRINT EDITION

Provinces join Manitoba in fears over prescription-drug costs

By: Peter O'Neil

Posted: 05/4/2012 1:00 AM | Comments: 0

OTTAWA -- Two other provinces have joined Manitoba in expressing concern about the prospect of sharply higher prescription-drug prices for Canadians if the Harper government accepts European Union demands for expanded drug-patent protection laws.

Manitoba's NDP government sent a letter to the Council of Canadians last month saying it has made clear to the Harper government the EU's demands are of "vital concern" to the province.

The British Columbia and Ontario governments have all recently made their views public, and a source said other provinces share those concerns about the EU's demand for measures that would benefit brand-name makers to the detriment of companies producing cheaper generic knock-offs.

"We would strongly urge Ottawa to ensure there are no incremental costs to British Columbia" as a result of the three-year-old trade negotiations that are expected to conclude by the end of this year, Pat Bell, B.C.'s minister of jobs, tourism and innovation, said Thursday.

One academic study frequently cited in provincial circles concluded last year prescription-drug payers -- consumers, companies, unions and government insurers -- would pay an extra $2.8 billion annually if Europe's demands are met.

Ontario, which like all provinces is struggling with aging populations and soaring health-care costs, would experience the biggest cost rise at $1.2 billion.

Quebec was next at $773 million, followed by B.C. ($249 million) and Alberta ($212 million), according to the study by two academics funded by the Canadian Generic Pharmaceutical Association.

B.C. has taken "a very strong position" on the issue, Bell told the B.C. legislature Monday in response to aggressive questioning from provincial New Democratic Party leader Adrian Dix.

"Our position clearly is that we don't want to see any increased costs that would come as a result of an agreement of this nature."

In Toronto on Tuesday, provincial Liberal Finance Minister Dwight Duncan was also pressed by the NDP about economist Don Drummond's recent report on Ontario's dire financial situation.

Drummond, who relied on figures from a 2011 academic study by University of Toronto professor Paul Grootendorst and University of Calgary economist Aidan Hollis, warned that EU-level protection for brand-name drugs could "cost Ontario dearly" and "more than wipe out" the savings from the government's recent reforms on drug purchases.

Duncan's reply this week focused on concern about the health of the generic drug industry in relation to Canada-EU talks.

"Ontario is one of the leading producers of generic drugs in the world," he told the Ontario legislature.

-- Postmedia News

Republished from the Winnipeg Free Press print edition May 4, 2012 A11

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