Randall Palmer, Reuters|Nov 22, 2013
The Supreme Court of Canada dealt a blow to pharmacy chains on Friday when it upheld Ontario’s ban on drugstores’ sales of their own private-label generic prescription drugs.
Pharmacy companies saw the private-label drugs as a way to reduce the impact of Ontario regulations designed to lower the cost of generic drugs. A lower court ruled that the store brand drugs circumvent bans on professional allowances and rebates.
The Ontario rules have weighed on the earnings of the drugstore chains, including Shoppers Drug Mart Corp., a principal appellant in this case. Shoppers’ share price edged lower after Friday’s ruling, down 7 cents at C$59.04.