Only 6.9% of brand-name drug companies' Canadian sales revenues
spent on research and development
TORONTO, June 23, 2011 /CNW/ - Research and development spending in
Canada by brand-name drug companies has dropped to its lowest level
since 1988, according to the latest annual report of the Patented
Medicine Prices Review Board (PMPRB).
The PMPRB reports that in 2010, brand-name drug companies spent only 6.9
percent of their Canadian revenues on research and development in
Canada, marking the tenth consecutive year that brand-name drug
companies have broken their promise to spend at least 10 percent of
their domestic sales on R&D.
The PMPRB report also shows that in 2010 the brand-name industry spent
only 1.4 percent of its Canadian sale revenues on basic research that
could lead to the discovery of new medicines.
The PMPRB's findings are contained in a new report released today by
CGPA. Copies of The Real Story Behind R&D Spending by Brand-Name Drug Companies in
Canada, 2011 are available at www.canadiangenerics.ca.
In Canada, market monopolies for brand-name drug companies have
increased eight times since 1987, yet investments continue to decline,"
said Jim Keon, President of the Canadian Generic Pharmaceutical
Association (CGPA). "Canada's current intellectual property regime for
pharmaceuticals exceeds our international treaty obligations and
provides greater protections to brand-name drug companies than those
afforded any other industrial sector in Canada, yet the brand-name
industry continues to lobby aggressively for even longer periods of
Canada and the European Union (EU) are currently negotiating a
comprehensive economic and trade agreement (CETA), which the federal
government hopes to conclude by 2012. As part of these negotiations,
the EU has tabled proposals on behalf of brand-name drug companies that
would considerably lengthen the period of market exclusivity for
brand-name drugs in Canada.
A February 2011 report prepared by Professor Aidan Hollis of the
University of Calgary and Paul Grootendorst of the University of
Toronto estimated that the adoption of the EU's drug patent system
proposals would lengthen periods of market exclusivity for brand-name
drugs by an average of 3.5 years and add approximately $2.8-billion
annually to Canadian's prescription drug bill.
"Canada's generic pharmaceutical industry is a strong advocate for
enhanced trade, and supports efforts by the Government of Canada to
reduce barriers to trade," Keon said. "Extending market monopolies for
brand-name drugs will not reduce trade barriers. It will, however,
increase revenues for European-based drug companies at the expense of
Canada's health-care system. It will also increase trade barriers for
Canadian generic pharmaceutical manufacturers."
About the Canadian Generic Pharmaceutical Association
The Canadian Generic Pharmaceutical Association (CGPA) represents
Canada's generic pharmaceutical industry. The industry plays an
important role in controlling health-care costs in Canada. Generic
drugs are dispensed to fill 58 per cent of all prescriptions but
account for only 26 per cent of the $22-billion Canadians spend
annually on prescription medicines.
SOURCE Canadian Generic Pharmaceutical Association
For further information:
Director of Public Affairs
Canadian Generic Pharmaceutical Association (CGPA)
Tel: (416) 223-2333
Mobile: (647) 274-3379