Alberta’s import of children’s medication to cost taxpayers $80-million

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Alberta taxpayers are on the hook for $80-million, after Health Minister Jason Copping finally revealed the cost of the deal struck in December to import five million bottles of children’s pain relief medication from a Turkish manufacturing company.

Mr. Copping said during a committee meeting on Wednesday that $70-million covers the cost of the medications and the other $10-million goes toward shipping, waste disposal and other administrative expenses. His office has, for months, declined to provide details on the total cost.

Alberta was required to purchase the minimum set by supplier Atabay Pharmaceuticals and Fine Chemicals when it entered into an agreement last year. The government expects to recover a significant portion of the cost through subsidized medication sales, in addition to supplying medication to other provinces and territories in need (at cost).

“We haven’t reached contracts yet. But that work is ongoing,” said Mr. Copping on Wednesday, adding the next day that the government is also working with international jurisdictions.

Mr. Copping also revealed during the Wednesday meeting that the first shipment of medication for retail sale arrived in Alberta last week. On Thursday, he told media those 250,000-odd units are in quarantine and an announcement will be made soon on distribution, as more shipments are expected.

Since the deal was inked, there have been numerous delays as the province and supplier Atabay worked through the Health Canada approval process for the exceptional importation of acetaminophen and ibuprofen.

Setbacks have been linked to labelling, childproof caps and proper documentation.

Mr. Copping said on Thursday to media that the delays are unfortunate but that the need is still there, even as medication shortages have improved since the original announcement in December. The shipments will also allow Alberta to stockpile for future waves of respiratory illnesses among children, he said.

“The conversations that I’ve been having with other jurisdictions, where there are still shortages, is it’s better to have and not need than need and not have, and we were put in that position last fall. We want to make sure that we don’t get into it again,” said Mr. Copping during the Wednesday meeting.

New Democrat MLA Rakhi Pancholi, who posed questions to Mr. Copping in the legislative meeting, told media on Thursday that the United Conservatives failed to deliver on its promises to deliver children’s medication when it was most needed and has a hefty price tag.

“We heard from the minister yesterday that we are essentially paying a $7 premium on top of the cost value. That’s $14 per bottle. Right now, any parent can go out and find children’s Advil or Tylenol for a lot less than that. I don’t know how we’re going to recover the costs,” said Ms. Pancholi.

“I think we’re in a really tough situation where Albertans are paying top dollar for something that parents don’t really need any more.”

At the height of cold and flu season, pharmacy shelves were emptied of children’s medication, leaving parents desperate to find relief. Pharmacists kept many medications behind lock and key as demand for medications soared.

In January, 250,000 bottles of liquid paracetamol, more commonly known as acetaminophen, arrived in the province for exclusive use in hospitals. The same medication has been approved by Ottawa for retail use, in addition to Pedifen, more commonly known as ibuprofen, pediatric syrup.

To date, one million of the five million bottles have been granted approval by Health Canada – three-quarters of which is for community pharmacies and retail outlets. The outstanding four million bottles will be three million units of acetaminophen and one million of ibuprofen, according to Scott Johnston, press secretary to Mr. Copping.