Date: 7
February 2011
Source:
www.canadiangenerics.ac
Link: http://www.canadiangenerics.ca/en/news/feb_7_11.asp
Toronto,
February 7, 2011 – Changes to
Canada’s drug patent system proposed by the European Union (EU) would add
nearly $3-billion annually to Canada’s prescription drug bill according to a
new study by two of Canada’s top academics on pharmaceutical policy.
The study, The
Canada-European Union Comprehensive Economic & Trade Agreement: An Economic
Impact Assessment of Proposed Pharmaceutical Intellectual Property Provisions,
was authored by Professor Aidan Hollis of the Department of Economics at the
University of Calgary and Paul Grootendorst from the University of Toronto’s
Faculty of Pharmacy. The study was commissioned and released today by the
Canadian Generic Pharmaceutical Association (CGPA).
Canada and the
EU are currently in negotiations for a comprehensive economic and trade
agreement (CETA), which International Trade Minister Peter Van Loan hopes to
conclude before the end of 2011. As part of these negotiations, the EU has
tabled proposals that would considerably lengthen the period of market
exclusivity for brand-name drugs in Canada and, according to the authors of the
study released today, would provide “the most extensive structural protection
for innovative drugs of any country in the world.”
The study’s key
finding is that Canadian payers, such as the federal government, provincial
governments, businesses and patients “would face substantially higher drug
costs as exclusivity is extended on top-selling prescription drugs, with the annual
increase in costs likely to be approximately $2.8-billion per year.”
The authors
also found that, if implemented, the proposals would delay the availability of
lower-cost generics in Canada by approximately 3.5 years.
Importantly,
the study reveals that the EU’s proposed changes would not lead to a
substantial increase in investment by brand-name drug companies in Canada. “The
purpose of exclusivity rights granted to innovators is to create an incentive
for research and development investments into new drugs. However, the amount of
additional investment in pharmaceutical innovation that would result from the
EU’s proposed pharmaceutical IP provisions would be a small fraction of the
additional costs to Canadians.”
Jim Keon,
President of CGPA, pointed out that pharmaceuticals are one of the EU’s top
exports to Canada, comprising 15.6 percent of total exports with a value of
more than $5 billion annually.
“The generic
pharmaceutical industry supports the Government of Canada’s efforts to increase
trade with other jurisdictions,” said Keon. “The pharmaceutical intellectual
property proposals tabled by the EU, however, will not eliminate trade
barriers, as pharmaceutical products from the EU already have unfettered access
to the Canadian market. These proposals will simply increase profits for
brand-name drug companies at the expense of Canada’s health-care system.”
About the Canadian Generic
Pharmaceutical Association
The Canadian Generic Pharmaceutical Association (CGPA) represents Canada’s
generic pharmaceutical industry. The industry plays an important role in
controlling health-care costs in Canada. Generic drugs are dispensed to fill 57
per cent of all prescriptions but account for only 25 per cent of the
$23-billion Canadians spend annually on prescription medicines.
Keywords: EU / Study / Canada / Drug
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