Mr. Chairman, vice-chair and committee members,
thank you for giving me this opportunity to address you on behalf of Merck Canada, one of the major innovative biopharmaceutical companies in Canada.
Merck Canada and the pharmaceutical industry are currently in the midst of an exciting and demanding time.
It is very exciting because of the remarkable progress that is being made in science and technology. That progress allows us to develop new medications and revolutionary vaccines to meet the outstanding challenges in the health care area.
This period is also demanding because we have to take part in putting in place the required policies to ensure that the new treatments are made available to the patients who need them.
I'd like to submit four recommendations to you regarding these opportunities and challenges.
Our first recommendation is that the federal government increase the Canada health transfer by at least 5.2% annually to allow provinces and territories to meet increasing health needs resulting from the aging of our population and the corresponding rising incidence of cancer, including providing timely access to cancer immunotherapies.
Our population is aging and will face more chronic diseases and cancer, among other health challenges. By 2030 the number of cancers diagnosed is projected to be almost 80% greater than the number diagnosed in 2005. At the same time, more new treatments, such as immunotherapies, will continue to become available, contributing further to the decline in cancer death rates that we are already starting to see.
Our health systems in Canada need to be prepared to meet these growing challenges. The Conference Board of Canada estimates that over the next decade, an additional $93 billion in health care spending will be needed, and the health care inflation rate will be 5.2% annually. Accordingly, we recommend the government ensure that the Canada health transfer be increased by at least this rate in the coming years to ensure provinces can meet the growing health demands, including providing timely access to these cancer immunotherapies.
Our second recommendation is that the federal government commit $100 million annually for a public vaccine funding mechanism.
Vaccines are important disease prevention tools. In 2007 the federal government invested $300 million to support human papillomavirus—otherwise known as HPV—immunization programs for over 1.7 million girls across Canada, to prevent cervical and other cancers. As evidence emerged on the health benefits to males, the programs were then extended to both genders. As a result, we have prevented a significant number of future HPV-related diseases and the costs that are associated with them. New funding would help provinces and territories continue to implement HPV immunization in older age groups and other immunization programs and would help to support communication and education activities to increase vaccine knowledge and acceptance. This would help the federal government meet its global commitment to achieve 90% of HPV immunization uptake by the year 2030, and ensure that Canadians are healthier and that our workforce is more competitive.
Our third recommendation is that the federal government reconsider the proposed amendments to the patent and medicines regulations, which will have very detrimental effects on the future prosperity of Canada and on the health of Canadians. The proposed amendments, which will change the way in which the federal regulator—the Patented Medicine Prices Review Board—assesses patented drugs, will have serious negative consequences on Canada's economic competitiveness in medical and biopharmaceutical research and patient access to innovative medicines. Among the consequences will be a significant reduction in research investments and health innovation partnerships, and the loss of high-quality jobs in the pharmaceutical and related sectors. Canada will lose its current tier one status as an early market for access to new medicines and as a prime destination for global clinical trials. That's denying Canadians an important means to access new treatments.
These proposed changes are untested and unprecedented in any jurisdiction, and run counter to Canada's innovation and skills strategy. Merck Canada strongly recommends the government reconsider these amendments, which would be detrimental to Canada's prosperity. We recommend that the government work together with the pharmaceutical associations towards better solutions to improve patient outcomes and protect the economic foundations of the life sciences industry.
Our final recommendation, recommendation number 4, is that the federal government develop a national pharmacare program that provides Canadians with universal, timely and high-quality access to medicines that maintain public and private drug insurance coverage. Merck Canada agrees with the need to address gaps in access to medicines, and if done right, a national pharmacare program would contribute to the sustainability of our health systems and increase Canada's economic productivity and competitiveness.
Any such program must be adequately funded so that Canadians have access to the medicines they need in a timely manner. It should also permit Canadians who have private drug coverage to maintain it, and this would allow governments to focus resources on addressing the coverage gap and ensuring timely access to new medicines.
On behalf of Merck Canada, we hope that the government will take these four recommendations into account.
I thank you for your attention. I am at your disposal for questions.