New CIHI Report Shows Prescription Medicines are not a Burden to the Canadian
Health Care System

OTTAWA, Nov. 1 /CNW/ - The following is a news release from Canada's Research-Based Pharmaceutical Companies (Rx&D) regarding the release of the National Health Expenditures Trends, 1975 to 2010 report by the Canadian Institute for Health Information (CIHI).

The latest CIHI figures on health expenditure estimates in Canada show medicines are no longer the fastest growing component in our health care system. The numbers indicate the drug budget in Canada grew by only 4.8% from 2009, in comparison to a 6.3% increase in 2008.  According to CIHI, the 2010 rate of growth for drugs is expected to be smaller than hospitals and doctors.

"As an integral part of the health care system, new medicines and vaccines represent one of most cost-effective health interventions in the system. They help reduce wait time lists and can replace more invasive surgeries," said Rx&D President Russell Williams.

"The fact that Canada is investing 16% of its health expenditures in medicines in 2010 does not mean that all Canadians have access to the medicines they need when they need them. At the moment, Canada lags behind other OECD countries in terms of access to new medicines and vaccines," indicated Mr. Williams.

According to the Rx&D International Report on Access to Medicines (IRAM), Canada ranks 20^th out of 25 countries in public reimbursement of new drug therapies to treat a wide range of diseases. Canada's Common Drug Review (CDR) recommended only 56% of drugs for public drug plans, far less than the 73% average for the other 24 countries. The fourth edition of the study is being released on November 2^nd.

"People who most rely on Canada's public drug system do not have the same level of public coverage for prescription medicines as those in other OECD countries, nor do they have access to the same level of coverage as those who have private insurance through their employers," said Mr. Williams.

"Governments should consider addressing the high price of generic drugs in our country if they want to generate more savings that will allow them to reinvest in innovative therapies. Several studies, namely from the Competition Bureau and the Fraser Institute indicate that governments, patients and private payers could save up to $800 million a year if generic drugs were sold at a competitive price in Canada. Lowering generic drug prices is part of the solution in making our health care system sustainable. The savings should be reinvested in improving access to new medicines and vaccines," concluded Mr. Williams.

About Rx&D

Rx&D is the association of leading research-based pharmaceutical companies dedicated to improving the health of Canadians through the discovery and development of new medicines and vaccines. Our community represents 15,000 men and women working for 50 member companies and invests more than $1 billion in research and development each year to fuel Canada's knowledge-based economy. Guided by our Code of Ethical Practices, our membership is committed to working in partnership with governments, healthcare professionals and stakeholders in a highly ethical manner.

For further information:

François Lessard
Communications
Telephone: [phone]
e-mail: [email protected]