Canadian Pricing Context• Multiple public & private payers• Patented price regulation• Generic prices – multiple initiatives• Overall value for pharmaceuticals
PMPRB- Annual Report – 2011Figure 9 Average Foreign-to-Canadian PriceRatios: 2005, 201131.110.880.991.051.001.211.151.830.820.840.840.951.001.031.201.980.00.51.01.52.02.5UK Italy France Sweden Canada Switzerland Germany U.S.2005 2011
Canada Compared to a Number ofOECD Countries20104IMS Health Data, 2010
PCPA - Brand• Announced by Premiers in August 2010 at ameeting of the Council of Federation (COF).• Purpose: to examine opportunities to conduct jointprovincial / territorial (P/T) negotiations for brandname drug products.
Brand Alliance Goals• To increase access to new drug tx options• To improve consistency of listing decisions• To capitalize on combined buying power• To achieve consistent pricing & lower drugcosts• Reduce duplication & optimize resources
Healthcare Innovation WG• January 16-17, 2012 – Council of the Federationmeeting in Victoria BC – led to establishment ofHealth Care Innovation Working Group;• Decision fueled by Federal transfer decision andlack of progress at the F/P/T Health Ministerstable;• Provinces and Territories
What is the HCIWG?• Co-chaired by Premier Brad Wall and PremierRobert Ghiz (Prince Edward Island);• Focused on innovation and transformation;• Membership consists of all provincial/territorialhealth ministers;• Work is parceled out to provincial ministries –no formal secretariat.
HCIWG Report – July 2012• 12 recommendations – endorsed by allPremiers• Pharmaceuticals – desire to think and actas one on generic and brand drug pricing• Competitive pricing for 3 to 5 genericmolecules• Accelerate & expand brand work
Pan-Canadian Generic• Competitive Value Price Initiative forGeneric Drugs by Fall 2012 for 3-5 drugs• Consider international pricingcomparability• Pricing to take effect April 1, 2013
Why 18%• Broad consultation• Tender challenges• International Comparison• Lowest transparent price achieved to date
Key Success Factors• Commitment of elected officials and seniorpublic officials• Built on existing collaboration – 10 yearsCDR, p-CODR• Leveraged existing implementationprocesses
Brand Progress• 8 joint negotiations completed• 17 products under active negotiation• Agreement all CDR and p-CODR productswill be considered for pan-Canadiannegotiation.
pan-Canadian Pricing AlliancepERC/CDEC Final RecommendationPan‐Canadian Brand Drug Pricing AlliancePan‐Canadian NegotiationsDealt with at P/T levelNo negotiations (collectively or individually)Confirm participation and identify lead jurisdictionOntario informs the manufacturer of decision on pan‐Canadian approach
Going Forward• Jurisdictions have agreed that thedevelopment of a permanent and formaloperating structure should be considered.• Continued work on obtaining better valuefor generic drugs.
For more information contact:Kevin WilsonDrug Plan and Extended Benefits BranchMinistry of Health