TORONTO - Shoppers Drug Mart (TSX:SC) says it might support an Ontario government bid to lower generic drug prices by eliminating so-called "professional allowances", but only if the Ontario government increases dispensation fees to compensate.
Shoppers has led a public fight against the provincial government's proposed legislation to bring down the price of generics by cutting off fees drug manufacturers currently pay to pharmacists.
But Canada's largest drugstore chain told shareholders at its annual meeting that it's not opposed to lower-price generics, as long as the government raises it's dispensation fees to cover the funding gap.
Shoppers also says it is introducing new services to the front end of stores and will expand its line of convenience food under a plan to make up for loss revenue from its pharmacy operations.
A 30-day public consultation period for the proposed changes is coming to an end on Saturday.
