The revised regulations are consistent with important Canadian values of value for money, equality and caring for our neighbours. The available evidence, while limited, does not support the concerns that the change in the return on investment will damage investment in future innovations. The experience of countries in the reference price basket, in accessing innovative pharmaceuticals, does not suggest that Canadian patient access should be impacted by price reductions.
There may also be benefits to industry and patients. Aligning PMPRB's regulations with the methods used by payers to evaluate drugs should expedite the currently lengthy price negotiation process, allowing companies' products more time on market with reimbursement.
Further, the downstream pressure on prices will strengthen companies' incentives to be more efficient in development, manufacturing and marketing of their products. Companies that can always pass costs on to the price taking consumer are unlikely to be as efficient as those that cannot.
In addition, the downward pressure on average prices will allow payers to provide coverage for more drugs for more Canadians from the same limited resources, and in the long-term should reduce the costs of prescriptions to Canadians.
Thank you, and I'm happy to answer any questions.