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Letter to the pan-Canadian Pharmaceutical Alliance regarding subsequent entry biologics


Release Date: 04/21/2016
Staff Reference: Stephen Frank

April 21, 2016

Mr. Imran Ali
Senior Manager
pan-Canadian Pharmaceutical Alliance Office
900 Bay Street, 2nd floor
Suite M2-61
Toronto, ON M7A 2E1

Re: Subsequent Entry Biologics - pCPA First Principles

Dear Mr. Ali,

On behalf of Canada's life and health insurance industry, I'd like to thank you for sharing the First Principles that you've developed to help guide more consistent negotiations for Subsequent Entry Biologics (SEB) going forward. In particular, we are very pleased with the commitment by the pan-Canadian Pharmaceutical Alliance (pCPA) to negotiate lower pricing on new SEBs and to require that the lower prices be transparent and apply to all payers, whether public or private.

As you are aware, all payers in Canada are struggling to sustain their existing drug plans in the face of escalating drug costs. The likely arrival of new SEBs to the Canadian market in the coming years will be a helpful tool to improve the financial sustainability of Canadians' drug coverage. We strongly believe that the best way forward is for both the public and private sectors in Canada to work together and to leverage our common buying power to help bring down drug prices for the benefit of all Canadians. The SEB First Principles are an excellent example of this and we remain hopeful that we will be able to explore further opportunities for closer collaboration with the pCPA going forward.

Yours sincerely,

Original signed by

Frank Swedlove

C: Federal / Provincial / Territorial Drug Plan Managers