Thanks, Peter.
I know the clerk has circulated to members a summary of the CGPA blueprint for a sustainable supply of prescription medicines for Canadians. The CGPA developed this blueprint based on some of the lessons learned during the first three months of the pandemic. It outlines our recommendations to make the prescription drug supply chain even stronger and more secure for Canadians.
The COVID-19 pandemic has served as a wake-up call for governments, health care professionals and the broader public on the importance of having a robust and resilient domestic pharmaceutical industry. In a recent interview with CBC Radio's The House, Deputy Prime Minister Chrystia Freeland noted that “one of the consequences of coronavirus is going to mean, for the economy, a shift from a sort of just-in-time, get-the-very-cheapest-input-possible model, to a model that puts a greater emphasis on resilience, puts a greater emphasis on supply chains that are closer to home”.
Putting a greater emphasis on resilience in the pharmaceutical supply chain will mean challenging the status quo and adopting new policy approaches. That is precisely what the CGPA is recommending.
The CGPA identifies specific measures to enhance Canada's existing pharmaceutical manufacturing capacity and domestic capabilities, create a more resilient pharmaceutical supply chain with increased supply redundancy, ensure Canada's role within a well-functioning global supply chain and encourage the establishment of a more coordinated approach to equipping Canada for future health emergencies.
I'm going to turn to our first area: strengthening the domestic pharmaceutical industry. Investments are needed to support Canada's pharmaceutical infrastructure. Companies will need assistance in preserving, refocusing and expanding domestic manufacturing infrastructure, and in increasing other infrastructure capacity such as warehousing. Companies may also require additional support to address the significant financial burden associated with maintaining higher stock levels of key manufacturing inputs and medicines.
The second aspect of strengthening the industry is increased regulatory convergence, both nationally and internationally. The reality is that Canada is a costly and complex jurisdiction for generic manufacturers to operate in. Removing unnecessary regulatory hurdles should be a priority.
The third aspect of this is pricing levels. “How low can you go?” pricing does not build resilience. A review of Canada's current pricing regime is needed to ensure that it is economically feasible to manufacture medicines in Canada and to be sufficiently competitive to acquire finished products and other inputs on the international market.
The fourth aspect of strengthening the market is strengthening the domestic industry. If the percentage of generic drugs used in Canada matched the current levels of use in the United States, Canada would save more than $11 billion annually.
The fifth aspect is that we are arguing for a sustainable domestic market for biosimilars to be implemented. This would involve maximizing the use of biosimilar medicines through broad implementation of well-controlled switching policies by public and private drug plans in Canada, including federal plans.
A second key area of our focus of the blueprint is securing and enhancing Canada's role in the international pharmaceutical supply chain. This could include, for example, the development of an international pharmaceutical supply chain security agreement, which is something we have recommended.
The third and final key area of focus in the CGPA blueprint is identifying essential generic medicines to domestically produce and stockpile for Canadian needs. A coordinated approach is needed among federal, provincial and territorial governments to establish a list of high-priority medicines. Building a domestic stockpile of these products would also require guaranteed volume and price agreements with companies.
The CGPA and its member companies look forward to working with Canadian governments and other stakeholders to turn the objective of a sustainable supply of prescription medicines for Canadians into a reality.
Peter and I would be pleased to answer any questions you may have this morning. Thank you.