Sask. pharmacy rebates could top $30M, health officials say

From CBC News:
The province's prescription drug plan is estimated to cost taxpayers about $313 million this year, according to the provincial budget. (CBC)The Saskatchewan government is keeping a wary eye on the manufacturers' drug rebates being paid to pharmacies — an estimated $30 million to $40 million a year.

According to Health Ministry officials, the money — which the makers of generic prescription drugs routinely pay to pharmacy companies — should be going toward reducing the overall drug bill for taxpayers.

There are about 350 pharmacies in the province, so $35-million worth of rebates would work out to an average of $100,000 for each one.

For years, the province has liked generic drugs, because they're cheaper than their brand-name equivalents — and keeping drugs costs under control has been a priority.

Kevin Wilson, the executive director of the Health Ministry's drug plan branch, says the impact of rebates on drug costs is a problem the government is just trying to get a handle on now.

"It's more challenging as this has started to come to light," he said. "Our focus would be to focus on getting the lowest reimbursement price on generic drugs … and at the same time providing fair compensation to pharmacists." ...more

Cleanup Drive to Sweep Pharm Industry

From the Korea Times:
The government will step up its fight against chronic illegal rebate practices whereby doctors and pharmacists receive money from drug makers in return for prescribing or recommending their products.

The wholesalers who receive such de-facto bribes will be sanctioned, the Ministry for Health, Welfare and Family Affairs said Tuesday.

A relevant bill has been submitted to the National Assembly to establish the legal grounds to suspend the licenses of doctors who take the money for up to one year.

Under the new rules to make more transparent the way pharmaceuticals are distributed to consumers, all parties ― doctors, pharmacists, wholesalers and retailers ― who give or take rebates will be subject to sanctions. ...more

The demise of the corner drugstore

From the Globe and Mail:
For years, John Girgis ran a profitable drugstore in Mississauga, and felt he was doing something good for the community. But today, Mr. Girgis's store is losing so much money he's thinking about selling it to one of the big chains or closing down.

Mr. Girgis blames changes to Ontario's drug pricing regime that prohibited an estimated $500-million in annual rebates that flowed to him and other pharmacists from generic drug companies. Since the new law came into effect this year, Mr. Girgis was cut off from thousands of dollars a year, a crucial stream of revenue for his pharmacy.

"We've been here 11 years and we're part of the community - just to pack up and leave would be devastating to a lot of people," he says. While his business has slid into the red, a Shoppers Drug Mart down the street seems to be thriving.

Mr. Girgis isn't the only independent pharmacist to feel the heat. A study on generic drug pricing issued last week by the federal Competition Bureau will give druggists across Canada more reason to fret. ...more

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