Canada not being helped by Big Pharma

Mr Keon slated a report on intellectual property in the pharmaceutical sector released by the Canadian Chamber of Commerce advocating longer periods of market exclusivity in Canada on behalf of ‘the narrow economic interests’ of brand-name drug companies. In a statement, the CGPA said this ‘will add billions of dollars to prescription drug costs for provincial governments, patients and Canadian businesses’.

The Canadian Chamber of Commerce was endorsing the proposals put forward by the EU as part of the current trade negotiations with the Government of Canada. Since many originator drug companies are based in Europe, pharmaceuticals are the EU’s top export to Canada comprising 16% of total exports at a value of more than CAD$5 billion (Euros 3.7 billion) annually. Mr Keon therefore queried the Canadian Chamber of Commerce’s desire to enrich the EU at the expense of Canada’s healthcare system and Canadian businesses, saying the report ‘provides a one-sided perspective on investments in Canada by the brand-name pharmaceutical sector’.

He pointed out that the Canadian government has increased intellectual property protection for brand-name drug companies no fewer than eight times since 1987. Yet despite these increases, investments in Canada by brand-name drug companies continue to decline. A federal government report has put research and development spending by originator drug companies in Canada at its lowest level in 20 years. ‘The Patented Medicine Prices Review Board (PMPRB) reported that in 2009, brand-name drug companies spent only 7.5% of their Canadian revenues on research and development in Canada, marking the ninth consecutive year that they have broken their promise to spend at least 10% of their domestic sales on R & D’.

Drug patent change would increase Canada’s prescription drug bill

A study commissioned by the CGPA has estimated that EU proposals to extend the period of patent protection would add over Euros 2 billion annually to Canada’s prescription drug bill. The independent academic authors also found that, if implemented, the proposals would delay the availability of lower-cost generics in Canada by approximately 3.5 years.

In Canada generic drugs are dispensed for 57% of prescriptions but account for only 25% of the money spent annually on prescription medicines.

Under Mr Jim Keon’s leadership, the CGPA is advocating ‘fair and balanced patent laws’ to ensure the timely availability of generic drugs for Canadians. Prior to joining the Association in 1994 (he became President in 1998) he held senior positions in the federal government and was directly involved in international trade negotiations for the Free Trade Agreements (FTA), North American Free Trade Agreement (NAFTA) and the World Trade Organization (WTO), as well as Canada’s inter-provincial trade negotiations.

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