c3 - cadth pricing panel - wilson - salon c
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Canadian Pricing Context• Multiple public & private payers
• Patented price regulation
• Generic prices – multiple initiatives
• Overall value for pharmaceuticals
PMPRB- Annual Report – 2011 Figure 9 Average Foreign-to-Canadian Price Ratios: 2005, 2011
3
1.11
0.88 0.99 1.05
1.00 1.
21
1.15
1.83
0.82 0.84
0.84 0.95 1.00 1.03 1.
20
1.98
0.0
0.5
1.0
1.5
2.0
2.5
UK Italy France Sweden Canada Switzerland Germany U.S.
2005 2011
Canada Compared to a Number of OECD Countries
2010
4
IMS Health Data, 2010
PCPA - Brand• Announced by Premiers in August 2010 at a
meeting of the Council of Federation (COF).
• Purpose: to examine opportunities to conduct joint provincial / territorial (P/T) negotiations for brand name 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 drug
costs• Reduce duplication & optimize resources
Healthcare Innovation WG• January 16-17, 2012 – Council of the Federation
meeting in Victoria BC – led to establishment of Health Care Innovation Working Group;
• Decision fueled by Federal transfer decision and lack of progress at the F/P/T Health Ministers table;
• Provinces and Territories
What is the HCIWG?• Co-chaired by Premier Brad Wall and Premier
Robert Ghiz (Prince Edward Island);• Focused on innovation and transformation;• Membership consists of all provincial/territorial
health ministers;• Work is parceled out to provincial ministries –
no formal secretariat.
HCIWG Report – July 2012
• 12 recommendations – endorsed by all Premiers
• Pharmaceuticals – desire to think and act as one on generic and brand drug pricing
• Competitive pricing for 3 to 5 generic molecules
• Accelerate & expand brand work
Pan-Canadian Generic• Competitive Value Price Initiative for
Generic Drugs by Fall 2012 for 3-5 drugs• Consider international pricing
comparability• 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 senior
public officials• Built on existing collaboration – 10 years
CDR, p-CODR• Leveraged existing implementation
processes
Brand Progress• 8 joint negotiations completed• 17 products under active negotiation• Agreement all CDR and p-CODR products
will be considered for pan-Canadian negotiation.
pan-Canadian Pricing AlliancepERC/CDEC Final Recommendation
Pan‐Canadian Brand Drug Pricing
Alliance
Pan‐Canadian Negotiations
Dealt with at P/T levelNo negotiations (collectively or individually)
Confirm participation and identify lead
jurisdiction
Ontario informs the manufacturer of decision on pan‐
Canadian approach
Going Forward• Jurisdictions have agreed that the
development of a permanent and formal operating structure should be considered.
• Continued work on obtaining better value for generic drugs.
For more information contact:
Kevin WilsonDrug Plan and Extended
Benefits BranchMinistry of Health
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