TORONTO - The Canadian government on Friday announced final regulations to reduce patented drug prices it said would save Canadians C$13.2 billion over a decade, overriding heavy opposition from pharmaceutical companies.

The changes are the biggest reform to Canada's drug price regime since 1987. They will save money for patients, employers and insurers including the government at the expense of drug company profits. They also could eventually cut the earnings of drugmakers in the United States, the world's largest pharmaceutical market.

The Canadian Life and Health Insurance Association called the regulations "a crucial step to lower prescription drug costs for all Canadians." The province of British Columbia also applauded the move, saying in a release: "People in B.C. and across Canada are now better protected against excessive drug prices set by manufacturers."

The new rules were largely in line with a December 2017 draft. They came after months of delay prompted speculation the government would back down in the face of industry lobbying or simply run out of time before Canada's October election.

"We are taking the biggest step in a generation to lower the price of drugs in Canada by moving forward with these regulations," Minister of Health Ginette Petitpas Taylor said in an interview.

Petitpas Taylor said the new rules would lay the foundation for a new national pharmaceutical care program. Prime Minister Justin Trudeau's government is expected to announce a program to cover the cost of prescription drugs for some or all Canadians, but the program's scope is not yet clear.

Under the new rules, Canada will change the list of countries the federal drug price regulator, the Patented Medicine Prices Review Board (PMPRB), compares domestic prices to, dropping the United States and Switzerland where prices are highest. It will also let the agency consider the cost-effectiveness of new medicines.

It will also force drugmakers to disclose some confidential discounts to the PMPRB, which sets maximum prices.

Initially expected to go into effect in January, the regulations were delayed so the government could review feedback. They will now go into force on July 1, 2020. -Reuters