The appellant, a generic drug manufacturer, appealed a Divisional Court decision dismissing its application challenging the vires of the Ontario government's drug pricing policy.
The policy imposed a price freeze on generic drugs and regulated their prices as a percentage of the equivalent brand name drug (the 70/90 rule).
The appellant argued the regulations were ultra vires the Drug Interchangeability and Dispensing Fee Act and the Ontario Drug Benefit Act, and were arbitrary and discriminatory.
The Court of Appeal dismissed the appeal, finding that the amended legislation explicitly authorized the Minister to consider the prices of other drug products when setting the drug benefit price.
The court also held that the policy was not arbitrary or discriminatory, as its purpose was to achieve the lowest prices for drug products in the public interest.
