Alberta strives to monetize its drug deal with Turkey after two years

Alberta Premier Danielle Smith said the government is working to get back to taxpayers the money it paid for drugs that have yet to be approved and delivered.

Smith announced the plan two years ago amid a national shortage of children’s painkillers.

The province spent $70 million up front to import five million vials from Turkish company Atabay Pharmaceuticals. But Alberta Health The services said Friday that Health Canada had approved only 1.5 million bottles, worth $21 million worth of product.

This left a credit of $49 million.

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Alberta pharmacies face shortage of some children’s medications

Smith said this week the problem lies with Health Canada, which would have to approve a new round of imports to give the province value for money.

“We’re waiting for Health Canada to work with AHS to identify the products, get the formulations, approve them, so we can implement them. These things take time,” Smith said in an end-of-year interview.

The premier said the province had to pay the $70 million up front.

“They delivered part of it, and then the supply chains were reestablished and we didn’t need to meet that demand with the two products we had originally ordered. So we have credit registered with Atabay,” Smith said.

The government and AHS declined to say what specific products they are seeking or when they might arrive.

“We want it delivered soon,” Smith said.

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Health Canada was unable to provide an immediate response.

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Alberta Health Minister confirms new children’s drug purchases will be at average retail price

AHS said the $70 million advance payment was made to Edmonton-based medical provider MHCare.

AHS did not respond to questions about how often it is common to pay the entire contract fee up front, with no apparent collateral to guarantee performance.

Shipping, waste disposal and other administrative costs related to the deal were initially estimated at an additional $10 million, but have not yet been finalized.

NDP Leader Naheed Nenshi said Smith’s United Conservative government signed a deal that didn’t follow normal procurement practices and it backfired.

“The federal government had already signed an agreement to put real Tylenol on the shelves before Turkish Tylenol,” he told the Canadian Press.

“Albertons should be really angry, because we have essentially given away $80 million in taxpayer money would have built schools.

Smith’s government stood by its decision to import the drug because, in late 2022, parents were desperate to find relief for their children at the height of the respiratory virus season.

The purchase has long been mired in difficulties.

She immediately faced delays as the province sought regulatory approvals and sorted through packaging and warning labels.

Pharmacists had to keep some of the medications behind the counter to ensure that customers purchasing them were aware of the comparatively lower dosage.

Hospital neonatal units eventually stopped using it for safety reasons.

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Infant painkillers imported from Alberta put newborns at risk, report says

The purchase also sparked questions about whether the province’s relaxed ethics rules meant elected officials could be bought for the right price.

Several UCP cabinet ministers said they accepted free tickets to Edmonton Oilers hockey games during the Stanley Cup playoffs.

They said they followed conflict of interest rules and denied any allegations of unsavory behavior.

Health Minister Adriana LaGrange said AHS has identified imported adult drugs it could use, is in negotiations with Atabay and is working to obtain approval from Health Canada.

“Once these processes are complete, I will be happy to share exactly what these medications are,” she said Thursday.

“My goal has always been to get products that we can use, to make the most of what’s left on the books, and that’s what’s happening.”

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