C.D. HOWE commentary - Cutting Square Deals: Drug Prices, Regulation,
16 August 2021
or no improvement.” Depending on the category, Preliminary indications are that the new rules the allowable price has in the past been calculated will result in very substantial price reductions if on the basis of domestic prices of other drugs in they are implemented in the way the agency has the same therapeutic class or on the median price proposed. [...] most CUA expertise resides in the Canadian However, if a drug is expensive, patients may not Agency for Drugs and Technologies in Health 13 Updates on the activities of the pCPA are available on the website of the Council of the Federation, an organization that coordinates joint efforts by the provinces and the federal government. [...] (In the Appendix, we discuss a feature of government should, in collaboration with the the Australian system that Canada might want to provinces, pursue policies that try to reduce the cost emulate in the future.) of drugs subject to the constraint that we pay our In negotiating with companies about drug fair share of global R&D costs. [...] For Strengthen the federal role through the example, patent holders in many countries have, in Canadian Drug Agency the past, been able to effectively extend the duration of a drug’s patent protection by repeated filings of A natural way to strengthen the federal role in new patent applications that cover variations of pharmaceutical pricing would be for the CDA what is essentially the same breakt. [...] Again, this seems to have been the federal covered by public plans, and the higher cost also is government’s intention when the plans for the likely to reduce the willingness of employers to offer CDA were initially announced: the 2019 budget health insurance as a fringe benefit for individuals presentation stated that the new agency would in low-paying and short-term jobs.19 “assess the effective.