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The hidden camera investigation and confidential documents obtained by the Cbc Fifth industry raise the question of whether Canada's largest drug distributor has profited from illegal rebates sold by non-patented drugs in Ontario.
Research has shown that this approach increases the cost of generic drugs for all Canadians.
McKesson Canada, which sells medicines to more than 8,000 pharmacies in the country, recently purchased more than 400 Rexall pharmacies, has denied the allegations.
The Canadian company is a subsidiary of San Francisco-
Based in macson, the company is the first.
6 among the Fortune 500 and the largest drug dealers in North America, offer
According to its website, it ranks third among all drugs used every day.
The fifth investigation captured a conversation with three independent pharmacists at two pharmacies who believed that McKesson had violated the law in Ontario and that generic drug rebates were illegal in Ontario. "[McKesson]
Give the numbers [
Our buying group
They merged the numbers and gave me back 50 cents . "
A pharmacist at the headquarters told a generic drug salesperson who was undercover in the fifth industry.
The second View: Canada has found the key to reducing the price of drugs, but Canadians will soon give up the necessities, pay the prescription in debt, and study the "rebate" of findsWatch ": was photographed at the fifth Manor in the CBC --
TV at 9 on Sunday nightm.
The conversation raised the question of whether the pharmacist had received a 50-cent rebate from macson, Canada.
In other words, every time a pharmacist sells a drug for $10, he can put $5 in his pocket.
In exchange, the pharmacist or his purchasing team will agree to store generic drugs distributed by McKesson, leading the company's sales ahead of its competitors.
Research has shown that this practice has greatly increased the price of generic drugs in Canadians, who have paid the world's highest prices for generic drugs.
"Greed is a powerful weapon," said Paul Bailey, chairman of the Ontario police pension recipients Association, which has many members who are on tight budgets and have very few police pensions.
He looked at the hidden footage taken at the fifth Manor, which also showed several pharmacists in Ontario asking for kickbacks.
He said: "The taxpayer has endured it again . "
Starting in 2006, Ontario banned the practice of paying or charging rebates or rebates in exchange for the storage of generic drugs for a specific brand as part of an effort to reduce the price of generic drugs.
Full ban on rebates-
Direct or indirect
The province entered into force on 2013.
Quebec is the only other province or region in the country that has restrictions on rebates.
GM prices have fallen since 2006, but Canadians still pay second
According to a recent government report, the highest amount of generic drugs in OECD countries.
The second view: the sudden drop in drug prices in Canada and the true story behind the investigation of hidden cameras, the fifth real estate company received an internal McKesson presentation to employees, as well as confidential documents submitted at the hearing of the Ontario College of Pharmacists.
Both documents raise the same question: does macson Canada profit from illegal rebates in Ontario?
Are they giving rebates to independent pharmacists in Ontario to ensure sales, or are they charging rebates from generic manufacturers in exchange for storing specific brands in Ontario's own stores?
"People don't know what they're being cheated on or why they're paying a hefty drug bill," Bailey said . ".
Macson, Canada, denied the claim. The Ontario police pension recipients Association became interested in kickbacks for the first time in 2009, when several generic manufacturers, wholesalers and a pharmacy fell into a rebate program.
Former police detective Bailey called for a criminal investigation.
He is now more convinced than ever that drastic action is needed.
"The only way we can find out the truth is by conducting an open investigation.
"The Fifth Estaterequestedan interview with Canadian president Paula Keays, but she will only provide a written statement.
Keays acknowledged that the company paid to pharmacies that provided generic drugs, but denied that the drugs were illegal rebates or rebates.
"Canada's macson company does not pay rebates in Ontario, and any other statement to the contrary is blatantly wrong," she said in a statement . ".
She said that the payments made by the company "are in full compliance with all current provincial regulations and [are]
One of the ways in which independent pharmacies operate and improve services for patients, such as the installation of blood pressure monitoring stations, the introduction of new technologies and automated services, in order to advise patients.
These are standard business agreements that are perfectly appropriate.
"The Fifth Real Estate survey, conducted in March 2018, showed Costco asked a generic manufacturer to provide illegal rebates of millions of dollars.
After the story aired, the fifth real estate company received an email from someone with years of experience in pharmaceutical sales, suggesting that the problem was far beyond Costco: "not just cost
So far, every pharmacy across the country has received rebates in currency.
I am a former representative and can say with certainty that this will happen.
It is still happening and will continue to happen.
"In order to test whether pharmacists in Ontario would ask for illegal rebates or disclose whether they received them, the insider agreed to help the fifth industry and go undercover as a salesperson.
Because he is still working in the industry, the fifth industry has agreed to protect his identity.
"The problem is that everyone is raising the rebate.
"It's a competition," he told Property 5 in an interview.
"Basically, it's a bottom-up game if you want.
You know, I will provide more points than the next guy I came in before.
This has pushed up the cost of pills.
This is unfair.
"The Fifth industry created a generic pharmaceutical company called Darry Pharma and produced business cards, product lists and websites.
In three days, the fifth Manor visited 17 independent pharmacies in kidina, Cambridge and Hamilton and spoke to nine pharmacy owners interested in purchasing generic drugs.
All but one person asked if the fake company paid an illegal rebate.
Several pharmacists also openly discussed their current arrangements, claiming they had received illegal rebates from large companies.
A pharmacist told the undercover salesperson of the fifth property: "For example, if you buy 1,000, for example, there are 50 rebates . " Referring to his current arrangement with McKesson, Canada. "[Other companiesgo higher [
Than 50]
"To motivate them to move things," said another pharmacist . ".
"They went to 60 some days [per cent]
They went to 70 some days [per cent].
"Some pharmacists want to know how the fake companies of the fifth real estate company will offer kickbacks, while others talk about the technical wording that can be used to hide kickbacks and bypass Ontario law. "So basically [
An intermediate company
Write us a check every month and technically it's not a rebate but more. . .
"Professional service and what you have," said another pharmacist . ".
"This is what most people are phrasing now.
"A Canadian internal McKesson document obtained from heritage 5 indicates that the company has also used various terms to describe payments made to pharmacists.
The PowerPoint presentation of 2017 directed employees to remove the word "rebate" from their "vocabulary", while other terms such as "professional allowance" should be "used with caution ".
"The presentation does say that rebates are illegal in Ontario, but goes on to say that drug store brands owned by McKesson, such as Guardian or IDA, pay to pharmacies in various situations.
"All four major McKesson banners pay to its pharmacy, but for different things, under different names and in different situations.
Sometimes we use the same words to express different meanings.
The CBC asked McKesson about the presentation, and the company denied that the document indicated that it was illegal to pay a rebate or rebate in Ontario.
The company said in a statement: "As expected, our various retail banners compensated their respective members in various names before macson Canada acquired them.
"Therefore, a major driver of the project reflected in the presentation is to ensure that McKesson Canada's strict corporate practices are reflected in all McKesson Canada banner operations.
Ontario is mentioned in the document, which reinforces the fact that rebates are illegal and macson Canada does not pay them.
"Brand drug sales in Canada have soared, and will the development of the sagsWill trade agreement affect the price of drugs in Canada?
A senior pharmacy interviewed by The Fifth estate did not buy it.
"You have to have so many terms because you want to make it complicated," the former executive said . ".
Since he is still working in the industry, The Fifth Estate has agreed to protect his identity.
"You don't want people to follow the money.
"No matter what you call it," he said, "at the end of the day, money from manufacturers to pharmacies is a rebate.
"Rebate disguised as an advertisement?
When Costco was caught asking for a rebate, a document submitted at the Ontario College of Pharmacists hearing claimed that it was also possible for other chain pharmacies to break the law.
The Fifth Estate filed a motion to submit evidence at the hearing, a few months after receiving most of the documents.
A letter from Costco's lawyer to the college's investigators said: "It should be noted that the form of advertising questioned by the complainant is common for pharmacies in the industry.
"Lawyers went on to claim that four other large chain pharmacies operating in Ontario, disguised as advertising fees, paid potential illegal rebates, including the Guardian and Rexall.
Wasting billions of drug spending research in Canada shows that the minister has vowed to save Canadians "billionaires" in drug prices under the Ontario forensic team's investigation into pharmaceutical companies paying guardians ", this is one of the banners for McKesson's independent retail pharmacy ,.
The CBC was unable to confirm the allegations and therefore sought an explanation from McKesson.
Macson, Canada, once again said it had not done anything against Ontario law.
"It is very clear: macson Canada does not pay a prohibited rebate in Ontario," the company added in the statement . ".
"Otherwise, any report is false and inaccurate.
"Millions of Canadians have paid the world's highest prices for generic drugs for decades. In the mid-
2000, the Canadian competition agency is one of the first countries to know the reasons in detail.
"A lot of people have theories, but we want to clarify how the general market works and how it is broken," said lead researcher Mark Ronayne . ".
Two reports, one in 2007 and the other in 2008, identified the practice of paying kickbacks as common in Canada, costing Canadians hundreds of millions of dollars a year.
"Rebates paid to pharmacies account for a large part of the cost of the payer's generic drugs, or more of the generic drugs expenditure," the report concluded . ".
"If you change the way private programs and provinces pay for generic drugs, Canadian taxpayers, consumers and businesses can save $0. 8 billion a year.
Potential savings could climb to more than $1 billion a year in the next few years, as some well-known brands lose patent protection.
According to Ronayne, "strong interests" have hindered change in Canada, which is why there is still a practice of paying rebates so far.
"If you make money by offering a lower price to a pharmacy and put your product on the shelves in some way, then the company will look for some way to do that," Ronayne said . ".
"It may not necessarily be consistent with the legislation or with the legislation, but they will try to do so.
They have been doing this for a long time and I wouldn't be very surprised if they kept doing it.