Canada is competing for access to vaccines with countries with much bigger markets that have collaborated with and invested in developers. Not surprisingly, these countries want to see a return on their investment in the health of their citizens. As it has done for decades, Canada wants equivalent access and benefits from research investment in the United States and Europe – in economic terms, this is called freeloading.
Although Ottawa’s mismanagement is responsible for delays Canadians face in vaccine supply, the federal government seems unlikely to accept its responsibility. Consistent with precedent, the government is more likely to blame the pharmaceutical innovators. For many years, Liberal governments, supported by anti-industry activists, have inhibited drug developers’ business in Canada by erecting barriers that disincentivize them from launching innovative products and establishing a best-in-class research environment in this country.
Ottawa plans to add another barrier in July when it changes the regulations of the Patented Medicine Prices Review Board (PMPRB), the federal agency whose role is to ensure the prices for patented medicines are not excessive. Most Canadians are unaware of the PMPRB nor do they understand the impact it can have on their lives. Many Members of Parliament and government officials appear to be just as poorly informed.
However, pharmaceutical and biotechnology companies and many patients with unmet health needs are only too aware of the PMPRB and the potential negative impact its new regulations will have. The changes are likely to reduce drug prices down to levels unsustainable for manufacturers which would impact their business in other countries given international price comparisons. The industry’s reaction will be to further delay launching innovative medicines and reduce investment in Canada. New data from Life Sciences Ontario reinforces this situation starkly.
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