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A Ban on "Private Label" Generic Pharmaceuticals: Legal and Economic Context

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  • Aslam H. Anis
  • Stephanie Harvard

Abstract

In 2010, the Canadian province of Ontario passed regulations to prohibit pharmacy chains from selling their own "private label" (PL) generic drugs. Pharmacy chain owners Shoppers Drug Mart Corporation and Katz Group Canada challenged the regulations, stating they fell outside the purpose and authority of their overarching legislation that was meant to promote low drug prices. In 2013, the Supreme Court of Canada ruled in favor of the ban, prohibiting PL generic drugs in Ontario. However, the Supreme Court was limited to examining the legality of the ban, not its impact on drug prices. This article reviews the legal case and also discusses the likely impact of PL generics on drug prices, taking into consideration the competitive effects of vertical integration and the price-caps on generic drugs currently in place in Canada.

Suggested Citation

  • Aslam H. Anis & Stephanie Harvard, 2015. "A Ban on "Private Label" Generic Pharmaceuticals: Legal and Economic Context," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 22(2), pages 219-229, July.
    • Handle: RePEc:taf:ijecbs:v:22:y:2015:i:2:p:219-229
    DOI: 10.1080/13571516.2015.1045738
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    References listed on IDEAS

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    1. Aslam H. Anis, 1992. "Pharmaceutical Prices with Insurance Coverage and Formularies," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 420-437, May.
    2. Anis, Aslam H. & Wen, Quan, 1998. "Price regulation of pharmaceuticals in Canada," Journal of Health Economics, Elsevier, vol. 17(1), pages 21-38, January.
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