Lessons Learned from COVID-19 Must Be Applied to Ensure a More Secure Supply of Prescription Medicines for Canadians

  • National Newswatch

In a recent media interview, Deputy Prime Minister Chrystia Freeland said that the COVID-19 pandemic must lead to a shift from "just-in-time, get-the-very-cheapest-input-possible model", to a model that puts a greater emphasis on resilience and on supply chains that are "closer to home".The COVID-19 pandemic created unprecedented challenges and uncertainty for global supply chains in all industries, with border closures and export restrictions imposed by some countries, and significant reductions in global transportation capacity. The pharmaceutical industry was not immune from these challenges.The vulnerability of the pharmaceutical supply chain became more evident in April 2020, when Canadian jurisdictions dramatically increased their demand of companies for critical hospital products used in Intensive Care Units (ICUs) to treat patients with COVID-19.Recent news that the United States has secured much of the supply of Remdesivir, a drug with promise to reduce the effects of coronavirus, serves to further highlight that ensuring a sustainable supply of prescription medicines must be a priority of the federal and provincial governments as they consider the economic and health policies that will guide Canada into the future.Compared with many countries that rely solely on importing their prescription medicines, Canada is fortunate to have extensive domestic generic pharmaceutical manufacturing capacity and capabilities. This is particularly important in times of health crises such as the COVID-19 pandemic. With generic medicines dispensed to fill 73 percent of all prescriptions in Canada the security of the nation's supply rests largely with the generic pharmaceutical industry.With the difficult lessons of COVID-19 as a guide, the Canadian Generic Pharmaceutical Association (CGPA) recently published its Blueprint for a Sustainable Supply of Prescription Medicines for Canadians that identifies measures to enhance Canada's existing pharmaceutical manufacturing capacity and domestic capabilities, create a more resilient pharmaceutical supply chain with increased redundancy, ensure Canada's role within a well-functioning global supply chain, and encourage the establishment of a more coordinated approach to equipping Canada for future health emergencies.Unlike other industrial sectors, such as aerospace, agriculture and energy, Canada's generic pharmaceutical industry has not traditionally had access to significant government support or intervention to enhance its essential role in Canada's health-care system and economy.In fact, government objectives such as achieving the lowest possible prices over the past decade have served to weaken Canada's domestic pharmaceutical sector and resulted in job losses, increased reliance on imports, and a more vulnerable pharmaceutical supply chain for Canadians. As a result, concern is now being expressed by governments and others about increasing reliance on imports from jurisdictions that are more economically competitive for global manufacturing investment, such as China and India.According to the federal government's Patented Medicine Prices Review Board (PMPRB), from 2007 to 2018, prices of generic medicines in Canada declined by an average of 59 percent. While these massive cuts have saved billions of dollars, they have also required generic pharmaceutical manufacturers in Canada to carefully manage their operations in order to remain financially viable and competitive. For example, just-in-time production and limited inventories are part of the reality of cost-containment.Canadian patients have access to more than two thousand prescription medicines approved by Health Canada. It is unrealistic to believe that all of these products, or the ingredients required to produce them, could be manufactured or sourced in Canada in a sustainable way. The pharmaceutical industry and supply chain are fully globalized. Regardless of where manufacturing occurs, ingredients and inputs are sourced internationally.It is, however, possible to strengthen Canada's existing pharmaceutical manufacturing capacity, promote a well-functioning global supply chain, and adopt a coordinated approach to better equip Canada for future health emergencies, such as identifying essential generic medicines to domestically produce and stockpile for Canadian needs.Governments and industry need to apply the lessons learned from the pandemic and change the way we think about the importance of prescription medicines so that the first priority is maintaining a stable and resilient supply for Canadian patients.Jim Keon is President of the Canadian Generic Pharmaceutical Association (CGPA), the national organization representing Canada's generic and biosimilar pharmaceutical industry.