On April 27, 2009, Ontario announced that it was taking action against a number of pharmacies, generic drug manufacturers and wholesalers under the anti-rebate provisions enacted under Bill 102. Audits done by the Ministry of Health and Long-Term Care's Ontario Public Drug Program uncovered discrepancies in the reporting of professional allowances. Upon investigation, it was determined that the pharmacies in question had been purchasing a greater amount of drug than required, collecting professional allowances on these amounts and returning a portion of the drugs to the manufacturer. The product would then be resold, triggering a second professional allowance.

Rebate penalty orders were issued in the amount of $33.8 million against 7 generic drug companies, 4 wholesalers and 1 pharmacy. 20 provincial offence charges have also been laid. Investigations are ongoing, with additional parties being implicated and possible further sanctions by the Ontario College of Pharmacists.

For more information, please see:  

http://www.health.gov.on.ca/english/media/news_releases/archives/nr_09/ apr/nr_20090427.html