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ARTICLE · 10 JUNE 2015

Ontario Introduces Tiered Generic Pricing Framework

Miller Thomson
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The Ontario Ministry of Health and Long-Term Care announced, on May 20, 2015, changes to generic drug pricing that are retroactive to April 1, 2013.

CanadaFood, Drugs, Healthcare, Life Sciences
Julian Worsley
Julian Worsley
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The Ontario Ministry of Health and Long-Term Care (MOHLTC) announced, on May 20, 2015, changes to generic drug pricing that are retroactive to April 1, 2013. The changes include the introduction of tiered generic drug pricing, and are the result of amendments to the regulations under the Ontario Drug Benefit Act (the ODBA Regulations).

In November, 2014, the MOHLTC gave notice of proposed amendments to the ODBA Regulations in respect of certain drug products approved for listing on the Ontario Drug Benefit (ODB)/Comparative Drug Index (the Formulary), which apply to public and private reimbursement. The existing pricing framework required manufacturers to set generic prices at 25% of the brand reference product for solid dosage forms (e.g. tablets, capsules) and 35% for non-solid dosage forms (e.g. solutions, creams).

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