Generic drugs in Canada cost up to 51% more than western Europe. (Health).

OTTAWA -- Canadians pay as much as 21 to 51 per cent more for generic prescription drugs than people living in Western Europe, Australia, New Zealand and in some instances the United States says a report from the federal government prepared by the Patented Medicines Prices Review Board in November 2002. The report also notes that while government regulations keep prices of brand-name, patented medications below the international average, generic medications are usually cheaper abroad.

Generic drugs in Canada account for 40 per cent of prescriptions filled, primarily because most drag plans require them to be dispensed when available. On average generic drugs are 35 per cent cheaper than the equivalent patented medications. Sales of generic drugs last year were about $1.3 billion, or about 11 per cent of the total drug costs in Canada.

However, compared to Canada, the most sold generic drugs are 26 per cent cheaper in the United Kingdom, 32 per cent cheaper in Australia, 68 per cent lower in New Zealand and 24 per cent less costly in Germany. Only Switzerland charges more for generic drugs than Canada.

In addition, the government study also discovered that Canada's generic drags are 69 per cent more costly than prices charged by major u.s. health plans and government agencies. But when compared to prices for patented drugs, Canadians pay 24.8 per cent less than Americans, who are working poor and uninsured elderly.

Although Canadians in most provinces pay more for generic drugs than their counterparts in other countries, those living in Saskatchewan and Alberta have a bit of a break. On average, people living in those provinces pay 59 per cent less for generic drugs than the cost of patented medications while Canadians living in Ontario and Nova Scotia pay the highest rate of 65 per cent.

Unlike other provinces, Saskatchewan is the only province to use a competitive tendering process to purchase generic drugs, which Saskatchewan Health estimates saved its residents about $13 million in 2000-01.

The province invites bids on contracts for high volume drugs listed on its provincial formulary by generic drug manufacturers. A fixed amount of drug sales is guaranteed to the company that offers Saskatchewan Health the most competitive price while in other provinces generic drug prices are set and pharmacists buy directly from the manufacturers.

But the Saskatchewan money saving scheme might be in danger, because the largest generic drug manufacturers do not bid on Saskatchewan contracts because offering lower process to one province would prevent them from doing business in other jurisdictions, said Ken Wilson acting director of Saskatchewan's drug plan.