For sure.
Our research program spans the life course of pharmaceutical policy, from factors that influence pharmaceutical innovation and research and development, including the location thereof, through to factors that were associated with the coverage of pharmaceuticals, the design of public insurance plans, and, finally, through the analysis of the population's use of medicines, its outcomes both on health status and on the health care system.
I want to thank this committee for its continued investment in the Canadian Institutes of Health Research and other federal granting agencies in health and other scientific domains. I bring this up in this particular forum because some individuals will tie the regulatory policies around medicines to industrial development and innovation policy.
My program at UBC has been studying innovation in pharmaceuticals for several years now. We've learned through this program of research that the way to foster innovation and the way to foster economic development is not through continuing to cut taxes for research investments; it is not to reduce regulatory requirements, which are both factors that will affect profits of industry but not necessarily innovation or the location of their investment. The best thing governments can do to affect innovation and to attract investment is through the direct and strategic investment in scientific personnel, capacity, and networks. This is a conclusion drawn by the C.D. Howe Institute, a reputable research institute in Canada; the Conference Board of Canada; and many others.
To paraphrase Michael Porter, a professor at Harvard who is an expert in what is referred to as industrial clusters, the best policy approach is to be a tough customer for any given sector while at the same time investing strategically in the capacities that would make your research environment a fertile ground for that sector to invest in. Therefore, my group has reached the conclusion that government in Canada is best to invest in organizations like the CIHR to foster research, to foster clinical trials in basic science that lead to innovation, while at the same time being a tough customer, so to speak. And that is, in some sense, the business of this particular committee's hearings today. Being a tough customer at some level also relates to post-market surveillance.
I've been fortunate enough to be collaborating with Mary Wiktorowicz, who will, I understand, be speaking before this committee next week on a cross-national study of post-market surveillance in several countries around the world. One of the key messages, which I am sure Mary will speak to you about at length next week, is that no country has truly succeeded in achieving post-market surveillance by leaving it to the pharmaceutical industry on a voluntary basis.
I don't say this is an accusation of industry. I think it's important to acknowledge that business is business and that pharmaceutical companies are not the agents in this sector whose primary responsibility is to ensure the safety of a population and value for money of the medicines used. The agents for whom that is a primary responsibility are us. It is policy-makers, it is health care professionals, and it is individuals like me, who are academics, who are publicly funded to do research on policy and practice.
You have heard from many individuals who have testified to this committee about gaps in evidence concerning post-market surveillance. I will not repeat this, other than to say it is a natural phenomenon in this sector that there will be evidence gaps at the point a product reaches the market. You've also heard, I think, a variety of conflicting reports around the value of adverse drug reporting.
It is true that few systems in the world attract all adverse drug events that occur, whether they're mandated adverse reporting systems or voluntary reporting systems. It is nevertheless still the case that ADRs, adverse drug reaction reports, are the basis on which roughly half of drugs that are withdrawn from markets around the world are eventually investigated and pulled from market. It is therefore an important signal and not one that should be abandoned because of concerns about the time constraints of practitioners and individuals involved in the reporting.
There are systems in which you can improve ADR reporting. You, as a committee, have heard from Bruce Carleton, who talks about active monitoring and an active system of surveillance for in-hospital reporting. In the hospital setting, it is possible to allocate dedicated personnel to tracking, documenting, and monitoring potential adverse events. Dr. Carleton's network of centres in children's hospitals across Canada is an example of an excellent system for tracking such ADRs. But all the ADR information in the world is going to be of little or no value unless we are tracking who is using medicines, who is not using medicines, and the effects of these phenomena.
Various representatives who have spoken before this committee have made mention of Canada's information systems for tracking drug utilization. Representatives of the pharmacy profession specifically mentioned British Columbia's PharmaNet data system.
PharmaNet is a system in which every prescription written in the province of British Columbia must be entered into a computer system at the point where it is dispensed by a pharmacy. This system tracks safety in a number of ways, the first of which is at the point of retail sale. When a patient fills the prescription, no matter the pharmacy and no matter the doctor who filled the prescription, the pharmacist has access to information that will allow them to identify potential adverse interactions between that drug and the other drugs the patient is receiving.
The second stage of value from systems like this is that every patient who fills a prescription is entered into a database, with the date of the prescription, the type of drug, and an identifying number that allows you to link it to their use of hospital and medical services and to important vital statistics, such as death and the causes thereof.
These kinds of information systems can be used for active and prospective post-market surveillance. Andreas Laupacis, who just spoke, was the former CEO of the Institute for Clinical Evaluative Sciences in Toronto. It is an exemplary institution in terms of the state of science for post-market surveillance using such databases.
The committee has also heard concerns about Canada's lack of an electronic prescription record, and I think this is an important concern. In 2006, the U.S.-based foundation, The Commonwealth Fund, did a survey of general practitioners in eight countries around the world. They found that over 80% of doctors in Australia, the Netherlands, New Zealand, and the U.K. routinely had access to electronic systems that flagged potential problems with drug doses or interactions for the drugs they were about to prescribe to patients.
In Canada, only 10% of doctors report having access to such systems. This is an abysmal failure of our system, given the fact that an investment in it would prevent adverse reactions or poor prescribing well in advance of the actual event. If you can stop a contraindicated drug or an adverse drug reaction before the prescription is written, the patient is more likely to leave the practitioner's office with the right drug in the right dose for their treatment.
There is no panacea, as Andreas has just said. In fact, in order to engage in post-market surveillance appropriately and to have real world drug safety and effectiveness monitored and managed in the way that optimizes our investment in care, we need a variety of approaches. In addition to adverse drug reaction reporting, we also need the prospective and active monitoring of data systems and the development of those data systems. But we will also need to fund new things, such as new head-to-head clinical trials—which manufacturers just don't have an interest in funding, yet are vital to engaging in the gold standard of scientific investigation of which drugs are best for our population.
We may need to do prospective cohort studies, where we collect primary data, possibly including genetic information, such as Bruce Carleton spoke of before this committee. And we may have to do what some refer to as pragmatic trials, or some others refer to as “designed delays”, where we in fact allow some populations of the country to access medicines randomly by choosing postal codes or other mechanisms, while holding the drug back for six months or a year for other populations, to get a form of quasi-randomization in the real world evaluation.
These are complex phenomena. There are many investments that need to be made; therefore, it is important to have sustained and substantial investment in post-market surveillance. Andreas Laupacis has referred to a business case and a proposal for a national network. I would encourage the members of this committee to read the business case and to speak further with the individuals involved with that network.
I want to put the investment into perspective, though. Canadians spend approximately $21 billion on prescription drugs every year. If we were to invest $21 billion as individuals in our retirement savings plans through mutual funds, or whatnot, we could expect to pay the fund managers approximately 2% for managing our return on investment. With all due respect to the managers of the funds, they're just managing financial matters. In the pharmaceutical sector, what we need, in some sense, is a fund manager who is not just managing for return on investment in terms of value for money, but also in terms of the population's health and safety. If you were to translate a 2% investment into monitoring post-market safety, effectiveness, and quality use of medicines in Canada, it would amount to $420 million a year invested in this activity every year, forever.
Now, I don't propose that the government immediately jump from zero to 60 in one moment, but it is quite probable, and I think it is quite important that we seriously consider the fact, that we have under-invested in systems such as electronic health records and such as a coordinating mechanism—which Andreas has talked about—with respect to prioritizing the allocation of scarce human resources toward researching and studying post-market surveillance.
So I would encourage you to carefully consider the investments that could be made, both in increasing the amount of resources available within Health Canada to do due diligence pre-market and outside in the community.
Finally, I want to stress, as you've heard from several members—