getting to access : what price is right? pharmaceutical pricing for canadians

What price is right? Pharmaceutical pricing for Canadians.

Carole Watson, Director, Strategic Pricing, Janssen Inc.

GETTING TO ACCESS Innovative approaches to innovative medicines Canadian Organization for Rare Disorders March 29, 2017. Vancouver

GETTING TO ACCESS Innovative approaches to innovative medicines

Canadian Organization for Rare Disorders March 29, 2017. Vancouver

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Artwork by Sebastian Ferreira Janssen is proud to feature artwork created by people affected

by the illnesses and diseases we are committed to treating and preventing.



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Then Now Types of medicines: Large populations + lower cost / patient Small populations + higher cost / patient

Local pricing decisions Globalized pricing frameworks

List Prices HTA, ICERs pCPA: Confidential rebates Private Payer agreements

Wide array of science Targeted science

Innovation threshold lower Higher innovation level required for success

R&D investment – large scale centres R&D investment across the Life Sciences Ecosystem

Randomized Controlled Trials RCTs + Real World Evidence

Stronger economies Prolonged economic slowdown

Younger populations Older populations

Treated in hospitals Treated in the community

Canadian reimbursement environment is still rapidly evolving

Health Canada Patented Medicine Prices Review Board

HTA (CDR, INESSS, pCODR)

Pan Canadian Pharmaceutical Alliance (pCPA)

Private Insurer Assessments

Provincial Payer Listings (PLAs)

“Drugwatch” type programs

Price and value hurdles between innovation and patients in Canada

3/29/17



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3/29/17 GETTING TO ACCESS

Innovative approaches to innovative medicines Canadian Organization for Rare Disorders

March 29, 2017. Vancouver .

§  Patients are always at the center

§  Broad understanding of value – to patients, healthcare system, society

§  Access for patients today

§  Incentive for investment in biomedical innovation to transform the lives of patients tomorrow

Medicines are priced to ensure patient access today – and tomorrow

3/29/17



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Source:CIHI(NHEX),PMPRBAnnualReport2015,StatisticsCanada.MethodologyinspiredbyBrettSkinner.SpendingonPatentedMedicinesinCanada.CHPI,2016.CalculationsbyInnovativeMedicinesCanada,September2016..*CAGR2005-2014

15%

25%

60%

0

1000

2000

3000

4000

5000

6000

+4.1% CAGR*

Non-Drug Costs: +8.4% CAGR*

PatentedDrugs:+0.8%CAGR*

Healthcare Sustainability: Innovative Drugs and Beyond

$, Per Capita

20%

32%

48%

Non-drug costs

Non-Patented drugs

Patented drugs



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Non-PatentedDrugs:+7.6%CAGR*

Total Drug Costs:

All Other Health, Excluding Drugs

Dr. Paul Janssen

“There are still many diseases for which there is no cure, and effective medicines must be found.

Although we have contributed to the solutions for some of these problems, we will continue our research efforts, because so much more needs to be done.”

3/29/17



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What price is right? Pharmaceutical pricing for Canadians.

Carole Watson, Director, Strategic Pricing, Janssen Inc.

GETTING TO ACCESS Innovative approaches to innovative medicines Canadian Organization for Rare Disorders March 29, 2017. Vancouver