Canadian Drug Price Comparisons "Unrealistic"

Current and former staff members of Canada's Patented Medicine PriceReview Board have challenged claims made by the PMPRB over the years that Canadian price levels for patented drugs are reasonable in comparison with those elsewhere in the world. These claims are inaccurate, according to the staff, as the price comparisons have been based on inflated prices for new drugs reported from the USA and Europe. An internal report published by Board staff reveals that PMPRB management had ignored staff warnings that the comparisons were unrealistic, and that the true costs of new drugs in the comparator countries were often 10%-50% lower than officially stated.

The staff say the Board has not fulfilled its goal of keeping drug prices in Canada at reasonable levels, noting that during the 10 years that it has been established, Canadian drug costs have risen 80%, growing around C$3 billion ($2.16 billion) a year. The charge of inaccuracy is denied by Board chairman Robert Elgie.

PMAC Research Spending Under Attack Meantime, Canadian press reports have queried the research-based industry's claim that it has more than fulfilled the pledge it made in 1987, to increase its R&D investment in Canada from 4.5% of sales to 10% in 1996, in turn for increased patent protection. With current R&D spending by the research-based companies averaging 12.5%, the industry appears to have fulfilled that undertaking, and more.