c3 - cadth pricing panel - wilson - salon c

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

Presenter

Presentation Notes

One month after the Federal transfer decision, Premiers gathered in Victoria and launched the Health Care Innovation Working Group. While the transfer was a key reason for its creation another reason was that Premiers believed – correctly – that the intergovernmental health ministers table had failed to produce meaningful results. Another important element in the formation of this working group was the decision that Ottawa would NOT be asked to participate on the Working Group.

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.

Presenter

Presentation Notes

This is a pan-Canadian committee co-chaired by the Premier of Prince Edward Island and the Premier of Saskatchewan. The membership of the committee consists of health ministers from all provinces/territories. Quebec sits an observer. Committee work is parceled out to health ministries that are tapped to lead specific work initiatives.

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

Presenter

Presentation Notes

A significant burden of work was placed on Saskatchewan and PEI to coordinate this work. A good deal of negotiation and stick handling occurred at the 11th hour to ensure the report was written in a manner that all provinces could live with. Provider groups were very supportive and openly positive of the work done to produce this report.

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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