Health Canada looks to lower the maximum price for drugs, but doing so could delay patient access, warns Montreal Economic Institute.
Health Canada is looking to lower the maximum prices for drugs through regulation. However, if the agency achieves this goal, it could actually put the health of Canadians at risk, according to a viewpoint published by the Montreal Economic Institute (MEI).
“In wanting to reduce the prices of drugs, Health Canada runs the risk of reducing access to drugs instead,” says Mathieu Bédard, economist at the MEI and author of the piece.
Earlier this year, Health Canada announced a consultation that aims to reduce the price of new drugs as they enter the country. This consultation proposed 5 main amendments to the current policy as follows:
However, in looking at the aftermath of similar decisions in other countries where drug prices have dipped too low, these measures have resulted in hurting patients rather than helping them by delaying patient access to new therapies, according to Bédard.
“In New Zealand, a country often cited as an example for its drug prices, the public system’s access to treatments for diseases like diabetes, cancer, and high cholesterol can be delayed by more than 10 years compared with Canada,” said Bédard, because pharmaceutical companies first introduce innovative drugs in the markets where the price of drugs takes into consideration the amount of research that went into development, as well as ensuring a return on investment.
“Currently, Canada ranks very high in terms of access to new drugs, but if this balance is upset by a reform that lowers prices, the country could wind up at the bottom of the pack,” says Bédard. “When it comes to delays in launching new drugs, Canada is the second fastest after Japan, with an average time to launch of just 90 days after approval, versus nearly 300 in Portugal and over 400 in New Zealand.”
“The interests of patients are better served when drug prices are at a level that allows for pharmaceutical research to be financed. When prices are set artificially low through the usage of regulation, as Health Canada recently suggested doing, there is a risk that patients will end up paying the price. Before intervening even more in this market, public decision-makers should appreciate the balance that underpins this access,” said Michel Kelly-Gagnon, president and CEO of MEI.
Julie Reed: Why 2024 Is Important for Biosimilars
April 17th 2024Julie Reed, executive director of the Biosimilars Forum, showcases how the biosimilar industry is expected to develop throughout 2024, including major policy changes and hope for continued improvement in market share for adalimumab biosimilars.
Exploring the Biosimilar Horizon: Julie Reed's Predictions for 2024
February 18th 2024On this episode of Not So Different, Julie Reed, executive director of the Biosimilars Forum, returns to discuss her predictions for the biosimilar industry for 2024 and beyond as well as the impact that the Forum's 4 new members will have on the organization's mission.
BioRationality: Removing the Misconceptions Surrounding Interchangeability
April 15th 2024Sarfaraz K. Niazi, PhD, outlines the current state of interchangeable biosimilars in the US and policy changes needed to clear up misconceptions surrounding the meaning behind interchangeability designations.
A New Chapter: How 2023 Will Shape the US Biosimilar Space for 2024 and Beyond
December 31st 2023On this episode of Not So Different, Cencora's Brian Biehn and Corey Ford take a look back at major policy and regulatory advancements in 2023 and how these changes will alter the space going forward.
Biosimilars Council: PBM Rebate Schemes Cost Americans, Payers $6 Billion
April 10th 2024A report from the Biosimilars Council evaluating IQVIA data found that rebate schemes orchestrated by pharmacy benefit managers (PBMs) are costing US patients and payers billions of dollars by suppressing biosimilar adoption.
Rising Biosimilar Adoption for an Italian Payer Will Benefit National Health Care System, Patients
April 9th 2024Data from 2021 and 2022 indicates increasing biosimilar use in an Italian health care company, with potential for full adoption in the future, benefiting both the National Health System and citizens through efficient and sustainable health care policies.