Markets for New Off-Patent Drugs (PMPRB report)

PMPRB 3rd Quarterly Report - Non-Patented Prescription Drug Prices Reporting: Markets for New Off-Patent Drugs June 2007

The PMPRB has released its report on Non-Patented Prescription Drug Prices. This report is the third of four quarterly reports which will be produced each year as part of the responsibility handed over to the PMPRB by the F/P/T Ministers of Health to monitor and report on off-patent prescription drugs.

Based on the IMS database, this report provides an overview of Canadian Markets for New off-patent drugs, highlighting generic copies entering the market after the 2001, 2002, and 2003 patent expiry of Brand products. Below are some key points from the report:

• For the 39 brand products that came off-patent in 2001, 2002, and 2003, 8 have since seen generic market entry (some products have multiple copies)
• Most of the 39 brand products were small market (15 had less then $100 000 sales in year prior to patent expiry; only 3 products had more then $5M) and market size “did not appear a strong indicator of generic entry” (p.4).
• Prices for most (23 of 31) new off-patent drugs without generic competition increased following patent expiry (range: 5-25% increase - no average increase provided in document).
• Prices for most (5 of 8) new off-patent drugs with generic competition "drifted upwards"(p.13) following generic entry (range: 7-34% increase - no average increase provided in document).
• Board asserts that generic entry tended to “moderate branded drug prices as the prices generally increased less for branded drugs that experienced generic competition than for those that did not” (p.2).
• On average, generic prices tended to be 50% -65% below the branded price each year follow patent expiry – (Here the Board pointes to a consistency with the policies of public drug plans; p. 16).
• Market share captured by generics varied considerably by product in the years following the Brand's patent expiration.
• No generics entered the largest (greater than $3M) new off-patent markets.