Generic drug deal to save Quebec more than $300 million yearly: Barrette

The Quebec government says it will save more than $300 million yearly on generic medications after reaching a deal with the association representing Canada’s generic pharmaceutical companies.

Health Minister Gaétan Barrette believes the five-year agreement in principle will save the province $1.5 billion, which will be redistributed into the health-care system.

READ MORE: Quebec reaches deal with generic drug manufacturers

The Canadian Generic Pharmaceutical Association says the deal includes further price discounts and the launch of new cost-saving generic prescription medicine.

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WATCH BELOW: Quebec is making changes to how it delivers health care

2:08 The Quebec government is making changes to how it delivers health-care

The association said in a statement a key clause in the deal is that Quebec won’t put out tenders for generic prescription drugs.

READ MORE: Quebec health minister meets with MUHC unions following board resignation

It says a negotiated deal is a better bet for everyone: taxpayers, patients, health-care providers and the generic pharmaceutical industry.

READ MORE: Canada pays too much for generic drugs: study

Quebec already spends about $800 million a year on generic drugs and Barrette wanted to reduce those costs.