Wednesday, December 28, 2011

Are You getting all the News you Need?



News Release CICPO
23/012/11 St. John’s for immediate release:

CICPO to ask Government to remove Shopper’s Drug Mart Private Label Generics

Ontario Court of Appeal upholds ban on Sanis Products

The Council of Independent Community Pharmacy Owners will formally ask that government remove Sanis generic drugs from the provincial formulary. This follows a decision by the Ontario Court of Appeal that sided with the Government of Ontario. The court said it agreed that the province could reasonably conclude private label generics would reduce competitiveness and drive up prices.
“This is what the Council has advised the Government of Newfoundland and Labrador. This is only one of many concerns we have regarding a pharmacy chain manufacturing its own generic medications”, says Executive Director Sue Kelland-Dyer. 

The provincial government listed Shopper’s Drug Mart generics on the formulary last year, disregarding the legal challenge that was moving forward in Ontario. Kelland-Dyer states, “The CICPO was surprised that Minister Jerome Kennedy moved so quickly to accommodate the large national chain when it moves so slowly to list other generics – thereby wasting hundreds of thousands of health care dollars.”

The Winnipeg Free Press also reported the following statement regarding the ruling:
“BMO Capital Markets analyst Peter Sklar said the Ontario ban won't prevent Shoppers from selling Sanis products in other provinces where they are permitted. In addition, the volume discounts that the retailer gets from its contract drug suppliers will probably offset the revenue it lost when the province banned the fees to it from generic manufacturers.”

“We can take from this that people in our province are expected to protect the stock value of Shopper’s Drug Mart instead of developing policies that protect people and local pharmacies in rural and inner-city neighbourhoods”, concludes Kelland-Dyer.
Complete Court of Appeal Decision: http://www.ontariocourts.on.ca/decisions/2011/2011ONCA0830.pdf
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