The generic pharmaceutical industry has played a vital role in Canada’s healthcare system for over half a century by providing safe and effective lower-cost alternatives to more expensive brand-name medicines.

Our industry has also contributed to the Canadian economy by employing over 11,000 highly skilled Canadians in functions spanning research and development, manufacturing, and distribution and marketing.

The Canadian generic pharmaceutical industry is also very active on the world scene and generates approximately 40% of its sales volume by exporting to countries around the world, the bulk of which is sold in the United States.

In contrast to brand-name companies having their drugs shipped into Canada from other countries, the majority of drugs sold in Canada by the Canadian generic pharmaceutical companies are “Made in Canada”.

In order to constantly meet Canadians’ healthcare needs in a wide range of effective drug therapies, the generic pharmaceutical industry invests approximately 15% of its sales in research and development, which represents nearly $500 million of annual investment in Canada.

Contributing to Canada’s Health

The generic pharmaceutical industry contributes not only to the health of Canadians, but also to the Canadian economy and its healthcare system.  Considering the fact that, unlike most brand-name drugs, many of the generic drugs sold in Canada are made in Canada, it is not surprising to note that each dollar spent on a generic drug supports more jobs and more investment in both R&D and pharmaceutical production in Canada than the same dollar spent on a brand-name drug.

As for healthcare, there is no other industry that has made, or continues to make, a greater contribution to affordability than the generic pharmaceutical industry.  Last year alone, Canada’s healthcare system saved more than $2.6 billion through the use of generic pharmaceuticals

 

1.	The biggest difference between brand-name and generic drugs is the price - Any drug sold in Canada must be approved by the federal Therapeutics Products Drug (TPD) program, and also meet the strict regulations established by The Food and Drug Act.  Which means that, with both generic and brand-name drugs being subjected to the same rigorous standards, there are no real differences in quality, purity, effectiveness, and safety.  However, since generic drugs cost much less on average, you will notice a difference in price – and often a significant one.
2.	Lower costs don’t mean lower-quality ingredients - Whether in a generic or branded drug, the active ingredient must meet the same scientific norms and standards set by the Therapeutics Products program.  What’s more, the excipients (fillers) used to make generic and branded medicines are selected from a limited range of available products. In fact, in many cases, these excipients come from the same supplier.
3.	Generic drugs work as well as brand-name drugs - A generic drug will have a different name and likely look a little different than its brand-name equivalent, but it will work the same.  This is because the manufacturer must prove that the product is as safe and effective as the branded version as part of the application process to sell a generic equivalent.  Provincial Ministries of Health also require proof that the active ingredients in the medicine are as pure, dissolve at the same rate, and are absorbed in the same manner as the original product.
4.	Finding out how to get low-cost generic drugs is simple - All you need to do is ask your doctor, pharmacist or a healthcare professional who is qualified to answer any of your questions about generic drugs.  You may discover that you are already receiving a generic drug, or that no generic equivalent of the drug prescribed by your doctor is yet available.
5.	Canada's generic drugs are made by sophisticated Canadian manufacturers - The research, development and manufacturing of generic drugs sold in Canada are performed by independent Canadian manufacturing companies.  Using the most advanced scientific and manufacturing technology available to develop their products, these companies not only produce generic pharmaceuticals, but also fine chemicals, innovative medicines, non-prescription and private label medications.
6.	Generic drugs are making a real difference to Canadian healthcare - Canadians are using generic therapeutics at an unprecedented rate – over 40% of all prescriptions filled in Canada are now generic drugs.  Which means that the industry is not only helping Canadians enjoy better health, but also helping them enjoy more affordable healthcare.  With yearly cost savings to the healthcare system of nearly $3 billion dollars, and growing, the generic drug manufacturers are doing their part to help preserve the level of healthcare service to which we have grown accustomed.
7.	Like any medicine, generic drugs are best used as recommended - When you are taking a prescription or a non-prescription drug, either branded or generic, it is essential that you listen to your doctor's and/or pharmacist's instructions.  Following the directions on the label is also important, since the misuse of medication is harmful, and can even be fatal.  Remember that just because a drug is generic, it does not make it any less serious of a medication – effective when used properly, and potentially dangerous when not.