Madam Chair, vice-chairs and honourable members of the committee, I thank you for this opportunity to appear today.
My name is Christine Donaldson, and I am the president and CEO of HealthPRO Canada. We are a national, member-owned, group-purchasing organization that serves more than 2,100 hospitals and health care organizations across the country. We help procure approximately $1 billion in pharmaceuticals each year, partnering with 50 pharmaceutical suppliers across the globe on behalf of the Canadian health care system. In addition, I am a hospital pharmacist, so I have a very strong investment in what we're talking about today and have experienced many medication shortages first-hand.
The recommendations I am bringing to you today are informed by my experience, by my role at HealthPRO Canada and by the over 20 pharmacy leaders from across the country who gave their input for our recommendations.
I am sure we would all agree that any conversation about pharmaceutical needs should be grounded in uninterrupted patient access to essential medicines. It is our position that today Canada is not currently well positioned to pursue full pharmaceutical self-sufficiency.
Thus, a sustainable and realistic pharmaceutical strategy must prioritize pursuing domestic manufacturing—but it has to be strategic—for critical medications; updating public procurement to prioritize both reliability and redundancy; creating more regulatory agility to incentivize pharmaceutical manufacturing here in Canada; enhancing coordinated data sharing on a national level; and aligning policy across manufacturing and innovation.
In recent years, Canada has experienced repeated shortages of many medications, including those that are hospital-based. These are not theoretical risks. When supply becomes unpredictable, hospitals are forced into buying alternative products and rationing them, which obviously brings increased risk and can compromise continuity of care. Think back to the shortage of pediatric Tylenol that caused risks to our most vulnerable patients—children—and undue stress for parents across the country.
HealthPRO's experience shows that Canada currently relies heavily on global supply and has limited redundancy. Pharmaceutical manufacturing is capital-intensive and depends on sufficient scale across multiple product classes. Replicating end-to-end capacity across all medicines would require substantial investment and volumes that Canada simply does not have with our relatively small population.
Thus, domestic manufacturing must be strategic and must focus on medicines that pose the greatest clinical and system risk. They include sterile injectables, antimicrobials, emergency and critical care medicines and high-volume hospital products.
Health Canada's recently published critical and vulnerable drug list provides an important evidence-based foundation for this prioritization. This targeted approach both strengthens and builds resilience where it matters most, without introducing inefficiencies or escalating costs.
Traditional procurement models have often emphasized immediate savings, but the price alone does not reflect the true costs across the whole system. Procurement can and should incorporate risk-adjusted criteria such as reliability, redundancy, sustainability and domestic capability. These criteria can remain fully trade-compliant, while encouraging manufacturers to invest in more resilient production to strengthen our supply chain overall.
Manufacturers consistently cite that regulatory uncertainty and long approval timelines are barriers to investing in Canada or bringing alternatives to market. Priority review of clinical, critical and shortage-prone medications would align with our trusted international regulators and help bring forward expedited pathways for alternative suppliers during these disruptions.
We know that data is fragmented across jurisdictions and many supply chain actors, limiting our ability to anticipate shortages before they escalate. We believe that improved standardized data sharing across all stakeholders, including organizations such as HealthPRO Canada, would enable earlier intervention, better forecasting and more proactive mitigation.
Finally, pharmaceutical sovereignty requires alignment among manufacturing, health policy and innovation. We see that investment in domestic capability is far more effective when it's paired with predictable procurement signals, regulatory agility and a clear understanding of those clinical priorities.
In closing, pharmaceutical sovereignty is not about choosing domestic production over global sourcing. The most resilient and cost-effective path is a balanced one, combining both strategic domestic capacity and diversified global supply supported by a coordinated national policy.
Thank you.