Generic prescription drugs cost twice as much in Canada as they do in the U.S., according to a new study by the right-wing research organization the Fraser Institute.
The study found that in 2007, Canadian prices for generic prescription drugs were on average 112 per cent higher than U.S. prices for identical drugs in the same year.
In contrast, prices for brand name (or patented) prescription drugs in 2007 were on average 53 per cent lower than American prices.
In 2003, the prices for Canadian generic prescription drugs were 78 per cent higher than those in the U.S. while the cost of brand-name drugs was 43 per cent lower on average in Canada compared to the US.
"Canadians are paying more than Americans for generic drugs because Canadian government policies are insulating generic drug companies and pharmacy retailers from normal, competitive free market forces that would put downward pressure on prices for generic drugs," said Brett Skinner, the principal author of the study, in a news release.
Skinner calculated that in 2007 alone, policies regulating prescription drugs cost Canadian consumers an estimated $2.9 to $7.5 billion in unnecessary spending "due to a combination of inflated prices for generic drugs and inefficient substitution of medicines."
The study also found that American consumers substitute generic versions of drugs for their brand-name originals at higher rates than their counterparts in Canada.
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