HEALTH BENEFITS
Patented and Generic Medications in Canada
Gary Sawatzky | Chief Operating Officer , ARTA
When a drug manufacturer introduces a new type of medication in Canada , they can patent the drug and sell it under its brand name , knowing generic versions of the drug are not allowed to infringe on the patent .
The patents for drugs last for about twenty years total , though this period starts at the time the drug is introduced , continues through the time the drug is formulated , tested for use and effectiveness , and goes through the lengthy regulatory approval process while it is being reviewed by Health Canada . As a result , a drug manufacturer can sell the drug to patients in the marketplace for only eight years . Once the patent protection expires , generic drug manufacturers are able to market generic bioequivalent versions of the drug .
One such drug that recently lost its patent protection in Canada is Xarelto ( rivaroxaban ). Xarelto is a very popular anticoagulant medication — also known as a blood thinner — used to treat and prevent blood clots . In 2023 , it was the # 4 drug covered by ARTA ’ s Benefit Plans by dollars spent by the Education sector , and the # 7 drug covered by ARTA ’ s Benefit Plans by dollars spent by the Public / Private sector . In total , ARTA spent almost $ 310,000 for Xarelto claims , based on submitted claims of $ 1.57 million ( most of the claims were paid for by public health care plans ).
Since Xarelto has lost its patent protection , generic drug manufacturers can now manufacture and sell the generic version of Xarelto , which is beneficial to ARTA ’ s Benefit Plans as generic medications typically cost between 10 % and 25 % of their brand-name counterparts , meaning savings for the plan and our members .
Rivaroxaban has already been added to the Alberta Drug Benefit List , so residents covered under the Alberta Coverage for Seniors program can claim rivaroxaban through their public drug care coverage . It has been added to the Alberta Drug Benefit List as a regular benefit , whereas the brandname Xarelto required special authorization for coverage .
Brand-name Xarelto is still available to be claimed through the ARTA Benefit Plans , but since the generic versions are now available , the plans will only cover up to the cost of the generic medication — anyone who wants to continue to take the brand-name medication is liable for the difference between the cost of the brand-name drug and the generic drug .
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