Release of the first report on "Non-patented prescription drug prices"

On July 4th, 2006, the PMPRB released its report on "Non-Patented Prescription Drug Prices". This report is the first 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 late last year to monitor and report on non-patented presciption drugs.

This first report provides an overview of sales and price trends in Canada and in 11 countries (PMPRB countries, less Sweden plus Spain, Finland, New Zealand, Australia & the Netherlands) based on the IMS database. Below are the key highlights from the report

• Total sales of prescription drugs in 2005 reached $12.4 billion, out of which almost 70% are for patented drugs, 15% are for generic drugs and another 15% for non-patented branded drugs
• Prices of generic prescription drugs were lower in all 11 countries compared to Canada in 2005, with the exception of Switzerland and the United States. Prices of generics in Spain, Finland and New Zealand were the lowest
• Canadian prices in general are high relative to the foreign countries if one considers "purchasing power parities" as opposed to using market exhange rates with the exception of Spain and the United States
• Prices for generic prescriptions drugs fell in all countries in 2005 - the most significant decrease was observed in the UK (32.4%) and Finland (23.9%). Canadian prices of generic drugs fell by 0.3%
• Prices of non-patented brand products fell in all countries in 2005 with the exception of the US (4.5%), Canada (3.4%), Germany (0.4%) and France (0.1%)
• Since 2002, Canadian prices of non-patented brand products increased more than prices for generic and patented products
• Canadian price increases between 2004 and 2005 for generic and non-patented brand products ranged between -2% and 2%. A larger proportion of non-patented brand products experienced price increases above 2% than the generic products
• The systemic anti-infectives and respiratory system classes were the only classes where Canadian generic prices increased significantly more than non-patented brand products