Canada-EU trade deal to affect pharma IP

A trade deal between the EU and Canada, due to be signed today (September 26) if last-minute German concerns can be overcome, would have implications for pharmaceutical IP protection and could raise the cost of drugs in Canada, a report has claimed.

The Comprehensive Economic and Trade Agreement (CETA), described as a free-trade agreement linking Canada with the EU, has been in the pipeline since 2008.

It is due to be presented by Canadian Prime Minister Stephen Harper and European Commission President José Manuel Barroso during a summit at the Royal York Hotel in Toronto.

Among its chapters is a section dedicated to IP rights and, according to the Canadian Medical Association Journal (CMAJ), some of the provisions in it could result in a delay in generic drugs hitting the market and a price hike for branded medicines.

“A technical summary of CETA released by Canadian trade negotiators revealed the deal's potential to substantially increase drug costs by extending patent protection for new drugs two years beyond the 20 years currently provided,” the CMAJ said, adding that it could also delay the introduction of lower-cost generic drugs.

The deal will also allow drug companies to sue governments using a mechanism known as investor-state dispute settlement (ISDS), according to campaign organisation World Development Movement (WDM).

The ISDS will “allow companies to sue governments in secretive tribunals instead of in national courts,” WDM said.

The method was used last year by pharmaceutical company Eli Lilly when it sued the Canadian government over court rulings that invalidated patents on schizophrenia and hyperactivity drugs.

But Canada's participation in the deal has been endorsed in a study by the Conference Board of Canada, which claimed that evidence from Europe suggested that stronger IP protection would encourage investment in new drug development in Canada.