Generic Firms Being Forced Out Of Canada?

Canadian government regulations such as the controversial 1993 patent protection for pharmaceuticals will force Canada's generic drug companies to leave the country for other markets if they are to survive, according to Leslie Dan, chairman and chief executive of Novopharm. He says that in addition, material and labor costs are rising, making the cost of producing generic drugs more expensive.

Novopharm has invested C$60 million ($42.8 million) in its operations in the USA, compared with C$15 million in Canada. The company is also thought to be in negotiations to acquire a company in the USA. Local industry observers are saying that other companies could follow Novopharm's lead.

Quebec separatism is said to be one of the reasons for the Canadian government's fears about examining the country's patent legislation, Barry Sherman, president and chief executive of generic company Apotex, has commented. He has said that Jean Chretien, Canada's Prime Minister made a personal promise to him to "take a hard look" at the 1993 legislation, but that fears of a backlash from foreign-owned pharmaceutical companies based in Quebec have prevented this.