Exclusive: Drugmakers Propose to Spend C$1 Billion to Scrap Some Pending Pricing Rules

In hopes of opposing some parts of the drug pricing crackdown set to have its effect on January 1st, the industry documents review by Reuters reveals that the pharmaceutical industry discarded a C$1 billion ($761 Million) proposal to the Canadian government. According to Reuters, an industry estimate shows that the remaining regulations will still reduce the drugmakers' revenue by at least C$19.8 billion ($15.1 billion) in ten years.

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Reuters also added that if other costly reforms are shelved, the pharmaceutical industry would be willing to spend C$1 billion over the same period to boost local manufacturing and commercialization, alongside new programs to improve access to drugs or medications for rare diseases.

(Photo: Darko Stojanovic)

In an interview with Reuters, Innovative Medicines Canada (IMC) President Pamela Fralick said that they had come forward with some viable options for the government to consider and it seems that there is not much interest in the same. She added that they felt it is the time to let Canadians know what the government is passing up. In the interview Fralick said that the industry's lobby group in Canada met with Patty Hajdu, Canada's Minister of Health to submit a written proposal the following week. But since then, the industry has not yet heard back.

The Canadian Government

On the other hand, Reuters furthered that the Canadian government argues that Canada's patented drug prices are too high, trailing only the United States and Switzerland. According to them, other countries enjoy similar access prescription medicines but with lower prices.

In a statement, the Office of the Minister of Health said that the Canadian government will always consider proposals on different ways to achieve the government's objective. However, they also emphasized that no alterations in the current directive are in the process of development.

The office also stressed that the Canadian government's stand would remain unmoved. They highlight that Canada has among the uppermost privileged or patented drug prices in the globe, and it negatively disturbs the patients' ability to access new-fangled medications.

The Pharmaceutical Industry

According to Reuters, the pharmaceutical industry has given in on one part of the plan. Canada's Patented Medicine Prices Review Board (PMPRB) will change the assessment countries used as standards in setting the maximum prices.

They added that the PMMRB would drop the United States and Switzerland from its comparisons and add nations or countries with much lower prices. Reuters further that the Canadian government's directive also authorizes the PMPRB in bearing in mind the cost-effectiveness of new medications and their possible impact on government finances.

Pharmaceutical companies also argue that price decrease and uncertainty connected with the complex cost-benefit analysis that will be compulsory for some of the new medications will make drugmakers less likely to launch new drugs in the small market of Canada.

While Canadian sales are not material to most of the global pharmaceutical companies, Reuters said that the new directives could inspire similar reforms from other countries and directly affect foreign prices.

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