This Report provides an overview of background information related to the pharmaceutical market both globally and within Canada, followed by a summary of the regulatory mechanisms related to pharmaceutical review in Canada. Reimbursement of pharmaceuticals in general and generic drugs in particular, within Canada and in various international jurisdictions are discussed and models for possible emulation are highlighted. The Report then offers suggestions for possible mechanisms to reduce the price of generic drugs, discussing both the pros and cons of each option, and concludes with CTAC’s recommendations.