The group of Canadian provinces and territories united to form the Pan-Canadian Competitive Value Price Initiative (PCPI) for Generic Drugs recently announced a three-year agreement they reached with generic drug manufacturers. The agreement became effective April 1, 2014.
Under the agreement, 18 generic drugs see their prices reduced to 18% of their brand price during the agreement period. According to PCPI, this arrangement is expected to save Canadians $3.8 billion dollars over the three years through the following price negotiations:
• 2013 – Six Pan-Canadian products reduced to 18% of brand-name price
• 2014 – Four more high-volume, multi-source product were reduced to 18% of brand as of April 1, 2014
• 2015 – Four more products to be reduced to 18% of brand-name price
• 2016 – Four more products to be reduced to 18% of brand-name price
The drugs listed under the agreement make up approximately 30% of the Canadian generic:
Generic Name / Brand Name
Atorvastatin / Lipitor
Rosuvastatin / Crestor
Amlodipine / Norvasc
Ramipril / Altace
Venlafaxine / Effexor XR
Omeprazole / Losec
Pantoprazol / Pantoloc
Citolopram / Celexa
Simvastatin / Zocor
The agreement also features a range of new pricing ceilings for other generic drugs, depending on the number of manufacturer offering generic alternatives for each drug.
The pricing negotiated through the PCPI must be followed in all Canadian provinces and territories. Although not yet official, the Quebec government has also recently announced their intention to participate is this agreement.
In Nova Scotia, the maximum reimbursable price for multi-source generic, solid, oral dosage forms not covered by this agreement have been reduced from 35% to 25% of the manufacturer’s list price of the brand product, effective November 12, 2014.
Plans covering these drugs will benefit from the lower pricing, and plan members prescribed these drugs will see lower out-of-pocket co-pays. Medavie Blue Cross plans have been automatically updated to reflect these new drug prices.