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
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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
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Canada Compared to a Number of OECD Countries
2010
4
IMS Health Data, 2010
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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.
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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
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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
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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.
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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
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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
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Why 18%• Broad consultation• Tender challenges• International Comparison• Lowest transparent price achieved to date
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Key Success Factors• Commitment of elected officials and senior
public officials• Built on existing collaboration – 10 years
CDR, p-CODR• Leveraged existing implementation
processes
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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.
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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
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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.
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For more information contact:
Kevin WilsonDrug Plan and Extended
Benefits BranchMinistry of Health
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