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It is blatantly attempting to bias the price ceiling downward

And again, the regulator’s own data advise against this change. The PMPRB’s annual report shows that most of the 12 countries that will be compared to Canada had lower price levels for new (or patented) drugs. Meanwhile, another PMPRB report showed that new drugs were also less available to patients in those countries as well, as indicated by fewer launches of new drugs in those markets. For those who believe this is a mere coincidence, a recent analysis by the Canadian Health Policy Institute (CHPI) offers more scientific proof.

Using data from the PMPRB and the Organization for Economic Cooperation and Development (OECD), CHPI tested the correlation between the number of new drug launches and three independent variables: the price level for patented drugs, the per capita GDP and the total market size (population) in each of 31 OECD countries. Market price level was the only variable that was a valid predictor of the number of new drug launches. The analysis confirmed that lower-priced markets experienced fewer new drug launches, and vice versa — higher-priced markets tended to experience more new drug launches.

An objective analysis of the PMPRB’s own data strongly suggests that any regulatory change that ends up arbitrarily depressing prices runs the risk of reducing the availability of new medicines for Canadian patients. There is no evidence-based justification for expanding the scope or complexity of existing price regulations for patented drugs. Policy-makers should reject the PMPRB’s proposed regulatory changes. They are unnecessary and will almost certainly reduce access to new medicines for Canadian patients.

Brett Skinner is founder and CEO of the Canadian Health Policy Institute.