Big pharma has been hit with a big loss.

Canada’s top court has upheld Ontario’s ban on drugstore chains selling their own private -label generic drugs.

The law was brought in by the provincial government in an attempt to cut health-care costs.

Shoppers Drug Mart and Rexall argued that the province was overstepping its boundaries, but the Supreme Court said the regulations are consistent with Ontario’s statutory efforts  to reduce drug costs.

It also said – if pharmacies were allowed to create manufacturers under their control,  they would be directly involved in setting drug prices – and have strong incentives to keep those prices high.