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2nd Session, 40th Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications or view the online bilingual version (PDF).

Bill 45

THE COMPETITIVE DRUG PRICING ACT (VARIOUS ACTS AMENDED)


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

PART 1

THE PHARMACEUTICAL ACT

C.C.S.M. c. P60 amended

1           The Pharmaceutical Act, C.C.S.M. c. P60, is amended by this Part.

2           Section 75 is amended by adding the following definition:

"product agreement" means an agreement between the government and one or more manufacturers or distributors of a drug that relates wholly or partly to the price or supply of a drug that is, or may be eligible to be, either or both of the following:

(a) designated as an interchangeable product,

(b) specified in a regulation made under clause 9(1.1)(a) of The Prescription Drugs Cost Assistance Act. (« accord d'approvisionnement »)

3(1)        Section 79 is amended by adding the following after clause (a):

(a.1) removing a product from a formulary;

3(2)        Section 79 is further amended by renumbering it as subsection 79(1) and adding the following as subsections 79(2) and (3):

Notice not required

79(2)       Subject to subsection (3), a regulation may be made under subsection (1) at any time without prior notice to anyone.

Notice requirement — product agreement

79(3)       Subsection (2) does not relieve the minister of any notice requirement set out in a product agreement.

PART 2

THE PHARMACEUTICAL ACT

(S.M. 2006, c. 37 (unproclaimed))

S.M. 2006, c. 37 (unproclaimed) amended

4           The Pharmaceutical Act, as enacted by S.M. 2006, c. 37, is amended by this Part.

5           Section 77 is amended by adding the following definition:

"product agreement" means an agreement between the government and one or more manufacturers or distributors of a drug that relates wholly or partly to the price or supply of a drug that is, or may be eligible to be, either or both of the following:

(a) designated as an interchangeable product;

(b) specified in a regulation made under clause 9(1.1)(a) of The Prescription Drugs Cost Assistance Act. (« accord d'approvisionnement »)

6(1)        Section 81 is amended by adding the following after clause (a):

(a.1) removing a product from a formulary;

6(2)        Section 81 is further amended by renumbering it as subsection 81(1) and adding the following as subsections 81(2) and (3):

Notice not required

81(2)       Subject to subsection (3), a regulation may be made under subsection (1) at any time without prior notice to anyone.

Notice requirement — product agreement

81(3)       Subsection (2) does not relieve the minister of any notice requirement set out in a product agreement.

PART 3

THE PRESCRIPTION DRUGS COST ASSISTANCE ACT

C.C.S.M. c. P115 amended

7            The Prescription Drugs Cost Assistance Act is amended by this Part.

8           Section 1 is amended by adding the following definition:

"product agreement" means an agreement between the government and one or more manufacturers or distributors of a drug that relates wholly or partly to the price or supply of a drug that is, or may be eligible to be, either or both of the following:

(a) designated as an interchangeable product under legislation governing the profession of pharmacy,

(b) specified in a regulation made under clause 9(1.1)(a); (« accord d'approvisionnement »)

9(1)        Subsection 9(1.1) is amended by adding the following after clause (a.2):

(a.3) removing a drug or other item from a regulation made under clause (a) or (a.2);

9(2)        The following is added as subsections 9(4) and (5):

Notice not required

9(4)        Subject to subsection (5), a regulation may be made under subsection (1.1) at any time without prior notice to anyone.

Notice requirement — product agreement

9(5)        Subsection (4) does not relieve the minister of any notice requirement set out in a product agreement.

PART 4

TRANSITIONAL AND

COMING INTO FORCE

Definition of "product agreement"

10(1)       In this section, "product agreement" means an agreement between the government and one or more manufacturers or distributors of a drug that relates wholly or partly to the price or supply of a drug that is, or may be eligible to be, either or both of the following:

(a) designated as an interchangeable product under legislation governing the profession of pharmacy;

(b) specified in a regulation made under clause 9(1.1)(a) of The Prescription Drugs Cost Assistance Act.

Application

10(2)       This section applies only to a product agreement made before September 30, 2013.

Termination of agreement

10(3)       Despite any provision of a product agreement to the contrary, the minister may, on giving 30 days' prior written notice to the other party or parties to the agreement, terminate the agreement — or any provision of it — if, in respect of a drug to which the agreement relates,

(a) the manufacturer or distributor is unable to provide the drug at a price specified by, or acceptable to, the minister;

(b) the manufacturer or distributor is unable to supply the drug in the quantity or in the manner required by the agreement; or

(c) the minister considers it advisable in the public interest to do so.

Effect of exercise of power

10(4)       Despite any provision of a product agreement or any law to the contrary,

(a) no damages or compensation of any kind are payable by the government; and

(b) no proceedings in which damages or compensation is claimed may be commenced or maintained against the government; arising from the exercise of a power under this section.

Coming into force

11          This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill amends each of three Acts in a similar manner. It amends The Pharmaceutical Act — both the current Act and the unproclaimed Pharmaceutical Act — and The Prescription Drugs Cost Assistance Act. These amendments enhance the government's ability to negotiate lower drug prices and to implement in Manitoba the "Pan-Canadian Competitive Value Price Initiative for Generic Drugs" — a joint initiative of the provinces and territories to negotiate lower prices for generic drugs.

The Bill provides clear authority to remove a drug from the "interchangeability formulary" under The Pharmaceutical Act, which is the listing of generic drugs and their prices. Similar amendments are also made to the drug-listing provisions of The Prescription Drugs Cost Assistance Act. In removing a drug from either of these listings, the government must provide notice in accordance with any agreement it may have with a drug manufacturer or distributor relating to the price or supply of the drug. If a drug covered by an agreement entered into before September 30, 2013, is removed from a list, the agreement may be terminated on 30 days' notice.