Generic Drugs

I take three medications daily:  1. Lipitor, which reduces cholesterol which I produce internally; 2. Ezetrol, which reduces cholesterol which I absorb from food; 3. Cozaar, which lowers blood pressure.  The generic names for these medications are Atorvastatin, Ezetimibe, and Losartan.

They are not inexpensive.  A three month supply of each are $ 215.33 CAD; $ 166.10 CAD; and
$ 121.50 CAD.  Fortunately, I have Blue Cross extended health coverage, which pays 70% of the cost.

Lipitor has been the best selling drug in the world, producing revenue up to $ 12.7 billion USD for Pfizer annually.  The patent has expired, however, and yesterday my pharmacist informed me that the generic equivalent is available. The cost was reduced from $ 215.33 CAD to $ 91.29 CAD.

A curious thing is that the generic form of Lipitor will not be available in the United States for another year (November 2011).  Pfizer is concerned about losing revenue from its top money-maker and has been able to negotiate with the generic manufacturer to delay its introduction there.

Canada and most western countries have some type of government price control for drugs.  In Canada, the Patented Medicine Prices Review Board limits the prices that drug manufacturers may charge.  New patented drugs may not be priced above another drug providing similar therapy; or, if a new therapy, above the average of other countries.  The result is that Canadian patented drug prices are less than the international average and sometimes much less than in the U. S.    
 
New provincial regulations across Canada are also restricting the cost of generic drugs.  Ontario has announced that generic drugs may not cost more than 25% of the patented form.  BC is introducing a plan to limit the cost to 35%, down from 65%.

I sometimes see demonstrators in the U. S. with signs objecting to Canadian-styled "socialized medicine".  Of course, the Canadian system is not "socialized".  It is essentially a system of private practices, with a single payer and some government regulation. The Canadian health delivery system is not perfect, and is faced with rising costs, as are health systems in other countries.  In the area of keeping drug costs reasonable, however, it seems to be doing a better job than others.