CANADA MOVES ON COMPULSORY LICENSING

Compulsory licensing has been a cornerstone of Canada's health care system for over a quarter of a century, according to the Canadian Drug Manufacturers Association, representing generic drugmakers, which adds that the system allows Canadian generics producers to compete against the foreign-owned manufacturers of "costly" brand-name drugs.

Although brand-name pharmaceuticals still retain around 50% of the market after several years of competition from generics, the association claims that availability of low-cost generic pharmaceuticals saves the country's health care system around C$1 billion ($831.9 million) annually.

The Canadian pharmaceutical industry, 90% of which is controlled by foreign-owned multinational drug corporations, has the highest level of foreign ownership of any G-7 country (comprising the USA, Japan, Germany, France, the UK, and Italy). In the other G-7 countries pharmaceutical patent legislation is designed to promote the interests of the domestic pharmaceutical industry.