Alberta Strives to Recoup $70 Million from Turkish Medication Deal After Two Years

Two years after Alberta’s government committed $70 million to procure five million bottles of children’s pain medication from Turkey-based Atabay Pharmaceuticals, the province is still working to obtain the full value of its investment. Premier Danielle Smith has emphasized ongoing efforts to ensure taxpayers receive appropriate returns, despite significant delays in product approval and delivery.
The initiative, launched in response to a national shortage of children’s pain medication, has encountered multiple obstacles. To date, Health Canada has approved only 1.5 million bottles, valued at $21 million, leaving Alberta with a $49 million credit. Premier Smith attributes the delays to Health Canada’s regulatory processes, stating, “We’re waiting for Health Canada to work with [Alberta Health Services] to identify the products, get the formulations, approve it, so that we’re able to execute on it. Those things take time.”
The province’s upfront payment aimed to swiftly address the medication shortage. However, as supply chains normalized, the immediate need for the ordered products diminished, resulting in undelivered quantities. Smith noted, “They delivered a portion, and then the supply chains were restored, and we didn’t need to fulfill it with the two products we’d initially ordered. So we have a credit on file with Atabay.”
Alberta Health Services (AHS) and the government have not specified which products they are seeking to fulfill the remaining credit or provided timelines for their arrival. Health Canada has refrained from commenting on submissions until they are publicly listed under review.
The procurement process has faced criticism for its unconventional approach. AHS confirmed that the $70 million prepayment was made to Edmonton-based medical supplier MHCare. However, questions remain about the commonality of paying entire contracting fees upfront without safeguards to ensure fulfillment. Additional costs, including shipping, waste disposal, and administration, were initially estimated at $10 million but have yet to be finalized.
NDP Leader Naheed Nenshi criticized the United Conservative Party (UCP) government’s handling of the deal, suggesting it deviated from standard procurement practices. He remarked, “The federal government had already signed a deal to get real Tylenol onto the shelves that arrived before the Turkish Tylenol.” Nenshi expressed concern over the substantial expenditure, stating, “Albertans should be really angry, because we basically have given $80 million of taxpayers’ money that could have built schools.”
The decision to import medication was made during a critical period in late 2022, when parents struggled to find relief for their children amid a surge in respiratory illnesses. Despite the urgency, the initiative encountered delays related to regulatory approvals, packaging, and labeling. The imported medication’s lower concentration compared to Canadian standards necessitated additional education for pharmacists and parents. Some hospital neonatal units discontinued its use due to safety concerns.
The procurement also raised ethical questions. Reports indicated that multiple UCP cabinet ministers accepted free tickets from MHCare to Edmonton Oilers hockey games during the Stanley Cup playoffs. While ministers asserted compliance with conflict-of-interest rules and denied any misconduct, the optics of the situation attracted scrutiny.
Health Minister Adriana LaGrange has stated that AHS is identifying alternative imported adult medications to utilize the remaining credit and is negotiating with Atabay. She emphasized the goal of obtaining usable products to maximize value, noting, “Once those processes have been gone through, I will be happy to share exactly what those medications are.”
As Alberta continues to navigate the complexities of this procurement, the focus remains on ensuring that taxpayers receive the full benefit of the initial investment. The situation underscores the challenges of rapid procurement during emergencies and the importance of adhering to standard practices to safeguard public funds.