Canadian generics plan could deter big pharma: report
Plans by Canada’s government to improve access to generic drugs could deter pharmaceutical companies from releasing brand medicine in the country, according to an internal government report.
The country’s Liberal Party-led administration is considering the introduction of a national pharmacare programme, which would seek to improve access to lower-cost generics.
An internal briefing, prepared for Canadian Finance Minister Bill Morneau last October and obtained by The Canadian Press under access-to-information laws, reportedly said that big pharma companies could scale back research should the plans be implemented.
The news agency’s story was published by several Canadian newspapers, including the National Post.
According to The Canadian Press, the Department of Finance feasibility report stated that “...brand-name pharmaceutical companies may respond to a broad shift to generic drugs by delaying the introduction of new drugs in the Canadian market or by reducing the R&D activities that they undertake in the country”.
The Advisory Council on the Implementation of National Pharmacare, established by the Canadian government last year to advise on a national pharmacare programme, is set to publish recommendations in the coming months.
In December 2017, the Department of Health published proposals, which have yet to be implemented, would give the country’s the Patented Medicine Prices Review Board (PMPRB) greater flexibility in reviewing drug prices.
The PMPRB is trusted with overseeing Canada’s patented drug prices and curbing excessive costs to patients.
The Department of Health’s proposals would expand the list of countries the PMPRB can consider when comparing Canadian drug prices to international standards. The department also recommended introducing new criteria for the board to take into account when determining if drug prices are excessive.
Last month, Pamela Frick, president of pharma industry association Innovative Medicines Canada, criticised the plans. In an article for the Policy Options think tank, she said that “most Canadians are served well by our dual public and private coverage”.
Frick warned that the proposals could “discourage companies from launching new medicines in Canada”.
LSIPR has contacted the Department of Finance for comment.
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