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Canadians pay very high prices for generic drugs compared to interna onal norms. The reason is not ineffi  cient or uncompe  ve generic drug companies, but provincial government pricing and insurance policies that are distor ng the market. This paper by Professor Aidan Hollis, an expert in the economics of pharmaceu cal markets, evaluates provincial government policies regarding generic drugs and proposes a new approach which could save governments and private insurers tens of millions of dollars a year.