"Huge potential" of Canada's generic drug market

Canada's generic drug market is one of the largest in the world and has "huge potential," according to India-based market analysis firm RNCOS. The group's report, titled Generic Drug Market in Canada, notes that last year 46% of prescriptions issued in the North American country were for non-branded medicines. 19% of the total drug market turnover was accounted for by generics.

The current distribution of copy-drugs by disease area shows that they are mostly prescribed for chronic conditions, such as cardiovascular disease. However, RNCOS argues that patent expiries, especially in the diabetes and oncology segments, could lift the generic market with double-digit growth to 14% per year until 2012.

The report's authors note the preference of Canadian pharmacists for dispensing generics, "as they give better returns than branded drugs." But this very success carries the threat of provoking government action: a Canadian think-tank, the Fraser Institute, has campaigned to raise awareness of the higher prices for ex-patent drugs in Canada compared with the neighboring USA (Marketletters passim).