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The discussion paper is organized into three main sections.

Following the introduction (2.0), section 3.0 discusses the current situation in the Canadian industry including the recent performance of the overall market and discusses the four segments of companies (brand, generic, contract service providers and biopharma analysis of the Canadian pharmaceutical industry.

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These pressures include but are not limited to an unprecedented expiration of patents for many blockbuster drugs, often referred to as the patent cliff, and on-going cost containment measures from both public and private payers.Similar to this contrast in geographical performance are the large differences in the drivers of growth in therapeutic areas.Biologics continue to become increasingly dominant in market share and as an exceptional driver of market growth.One of the biggest issue going forward is the ability of Canadian companies to successfully compete with other countries on many keys factors including cost, talent and market attractiveness; market attractiveness as defined by regulatory requirements, market access, IP legislation and pricing controls.

The evolution and growing dominance of biologics along with thrive and compete in the years ahead.

The contrast to this innovation in biologics is patent expiry precipitating record levels of revenue losses for brand products and triggering the expansion of the generic sector, globally and in Canada.