Tuesday, October 30, 2007

Pharmacy rebates should make generics cheaper for patients: Competition Bureau

From the Canadian Press:
Many generic drug companies compete for space on pharmacists' shelves by offering rebates to the retailers - but those benefits are not finding their way into consumers' wallets in the form of lower prices, a study by the Competition Bureau has found.

The study by the independent agency found that rebates average about 40 per cent of the price the pharmacy is charged on paper for various generic drugs.

"Rebates provide incentives for pharmacies to select a particular manufacturer's product," bureau commissioner Sheridan Scott said Monday in releasing the study results.

Scott said that public sources of information and interviews conducted as part of the study show prices actually paid by pharmacies in most provinces were "on average at least 40 per cent below what the pharmacy was invoiced." ...more

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