Yes.
Evidence of meeting #86 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was health.
A video is available from Parliament.
Evidence of meeting #86 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was health.
A video is available from Parliament.
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
If you say a health product costs $10, the fee to the industry currently represents 1¢ of that $10. What would happen? As I said, globally, we know others are charging 100% cost recovery and much larger fees, and there has been no negative impact on industry that we know of externally.
In fact, the fees were set quite low in Canada in the 1990s to be sympathetic to the challenges of the industry and to make sure that these didn't cause deleterious economic impacts. We don't know what the impact would be of raising the fees substantially. That would be subject to analysis and discussion with the stakeholders to talk about what the regulatory impact analysis would show.
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
It is possible, I think.
6 p.m.
Liberal
The Chair Liberal Wayne Easter
I think we're in agreement to stay until 6:15. The vote will be in a little over 22 minutes, so we're okay. We're only up the hall.
Mr. Fergus.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Just in follow-up to Mr. Dusseault's question, I have a couple of questions for you, Mr. Trehearne.
In regard to the U.S. case, would it be accurate to say that the drug companies pay a full fee or a greater percentage of the costs incurred by the FDA?
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
That's absolutely right.
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
It's above cost, actually, in some cases, but it is 80% to 100%.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Among the OECD countries, I imagine that the price for original drugs, brand-name drugs, is higher in the United States, is it not?
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
For brand-name, yes, but for generics, no.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Right, Canada has the highest in generics, and the U.S. has the highest for brand-name.
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
Yes, exactly.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Which OECD or G-7 country has the lowest brand-name drug prices?
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
The pricing model is not really my field of expertise. If you look at the comparative metrics that Health Canada looks at, a lot of the Scandinavian countries—
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
Yes, many of the European countries pay far less. I know a little bit about Australia, for instance, but you're talking about there being one door into that country. It is the front-end regulator, and it sets fees based on negotiations to access the market in Australia as a whole. Here in Canada, we regulate the health and safety of a drug, but there are multiple buyers, as you know.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Let's assume that the Scandinavian countries or the U.K. would have lower brand-name drug prices.
6 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
That's correct, yes.
6 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
What about their equivalents to the FDA or Health Canada? What are their charges to the industry?
6:05 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
The EMA charges, I believe, 100%. I couldn't quote you their absolute cost for a new active substance review, but we could get that information for you, if you would like.
6:05 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
So there is no correlation between the fees charged by the health authority and the brand name.
6:05 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
Your point is well taken. Essentially, they're charging more for the cost recovery of the drug review, but the fee, the cost of drugs in the country, is lower generally.
6:05 p.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
You wouldn't accept any argument by the brand-name drug companies that this would increase the cost to the consumer?
6:05 p.m.
Director General, Resource Management and Operations Directorate, Health Products and Food Branch, Department of Health
In a consultation, I would have to listen to those arguments. As to their merit, however, and the evidence-base around them, I would have to look at that specifically. It's hard for me to say.