Key findings, in my opinion:
- generic manufacturers compete by offering pharmacies rebates off invoice prices (to be considered, however, that two Canadian provinces prohibit rebates); rebates are substantial (on average 40 per cent of the price the pharmacy
is invoiced)
- but this competition is not reflected in prices paid for the purchase of generics
- as the Competition Bureau concludes: "A regulatory and market framework where incentives to supply drug plans more closely reflect the underlying market dynamics could provide significant benefits to drug plans, and in turn to insurers, employers and Canadians".
Competition Bureau Generic Drug Sector Study.pdf (Objet application/pdf)
Wednesday, November 07, 2007
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