The legal fight between the Ontario government and 2 pharmacy chains over generic drug regulations is heading to Canada's highest court.
In a ruling on August 30, 2012, the Supreme Court of Canada revealed its decision to hear 2 appeals on the issue — one from Shoppers Drug Mart and the other from the owners of the Rexall chain, the Katz Group of Companies.
The battle between the 2 companies and the Ontario government dates back to 2010, when the province implemented new generic drug regulations, that among other measures, banned pharmacies from selling their own private-label generic drugs. The province maintained private-label generics would reduce competitiveness and drive up prices.
Shoppers and the Katz Group launched a legal challenge before the Ontario Divisional Court and they won the first round. In February 2011, the court ruled that the province went too far with the ban on store-brand generics. That ruling was overturned by the Ontario Court of Appeal, which ruled in favour of the provincial government in December 2011 — restoring the prohibition on private-label generic drug products.
The Supreme Court of Canada is expected to hear the appeals in May 2013.