C3 - Cadth Pricing Panel - Wilson - Salon C
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  • 1. Canadian Pricing Context• Multiple public & private payers• Patented price regulation• Generic prices – multiple initiatives• Overall value for pharmaceuticals
  • 2. 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
  • 3. Canada Compared to a Number ofOECD Countries20104IMS Health Data, 2010
  • 4. 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.
  • 5. 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
  • 6. 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
  • 7. 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.
  • 8. 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
  • 9. 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
  • 10. Why 18%• Broad consultation• Tender challenges• International Comparison• Lowest transparent price achieved to date
  • 11. Key Success Factors• Commitment of elected officials and seniorpublic officials• Built on existing collaboration – 10 yearsCDR, p-CODR• Leveraged existing implementationprocesses
  • 12. Brand Progress• 8 joint negotiations completed• 17 products under active negotiation• Agreement all CDR and p-CODR productswill be considered for pan-Canadiannegotiation.
  • 13. 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
  • 14. Going Forward• Jurisdictions have agreed that thedevelopment of a permanent and formaloperating structure should be considered.• Continued work on obtaining better valuefor generic drugs.
  • 15. For more information contact:Kevin WilsonDrug Plan and Extended Benefits BranchMinistry of Health