In response to concerns about rising drug budgets, the Patented Medicine Prices Review Board has stepped away from its legally mandated role to review drug prices to ensure they are not excessive—to a self-designated role to set drug prices with a two-pronged process.  

First, list price of drugs cannot be higher than the median price of 11 comparative countries. Not unreasonable and not likely to stop drugs from being brought to Canada. 

Second, the PMPRB proposes to restrict the actual selling price of all new medicines to a single arbitrary standard, without regard for severity of condition, unmet need or the added benefits over existing therapy. For about 80% of new medicines, this single arbitrary price, which was set with no evidence as to appropriateness, with no consultation as to impact on patients, and with no consensus among stakeholders as to feasibility, will be far below manufacturers’ cost of research, development and ongoing support. Not surprisingly, manufacturers have indicated they will not bring new medicines to Canada – perhaps after pricing has stabilized in other countries and perhaps never.

The big losers are the Canadian patients who will be deprived of critically needed medicines. Indeed, fearing the impact of the new drug price controls, manufacturers have already reduced clinical trials in Canada by about 40% for 2019 and at beginning of 2020, have announced withholding the launch of a half-dozen important new drugs, with more to come. Canadian patients are already being harmed.