Canada may make cost a factor in drug approvals

12 August 2001

Canada's federal Health Minister, Allan Rock, is to propose thatcost-effectiveness should become a third criterion, in addition to safety and efficacy, in the approval of new drugs.

Mr Rock said he would propose this at a meeting in September with the provincial health ministers, held to examine ways of dealing with the nation's soaring prescription drug reimbursement costs, reports the Montreal Gazette. Adoption of this approach would involve the establishment of an advisory group, similar to one set up in Australia, which would conduct cost-benefit analyses on newly-approved non-innovative drugs and present its findings to the provinces, which would then, on the strength of this evidence, decide whether or not to include the product on their formularies.

The report notes that a major problem for the provincial formularies' finances in recent years has been the fact that, once one province decides to list a "me-too" drug on its formulary, all the others come under strong pressure to follow suit. However, it adds, federal health officials have stressed that there are no plans to change the approval process so as to deny such products access to the market.

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