Generic pharmaceutical markets in Canada are subject to various 'price-cap' regulations referred to as the maximum allowable list price (MALP). In 2013, the Pan-Canadian Pharmaceutical Alliance (pCPA), formed as a coalition by the provinces, introduced a nation-wide 18% MALP for the most commonly prescribed generic drugs. The MALP system has been criticized as being fundamentally flawed because drug plans do not have the information needed to set appropriate MALPs. When the MALP is set to high, the drug plans overpay. Conversely, when the MALP is set too low, firms either don’t enter the market, or exit the market often creating drug shortages. Drug shortages are an increasing concern in Canada and globally and it has been argued that one of the explanations for sudden shortages is the price pressures put on the generic drug industry. To address these shortcomings of the MALP, the pCPA implemented the “tiered-pricing” framework for new generic drugs in 2014, under which the MALP is initially set high and declines as the number of generic firms supplying the market increases.
In the seminar, Dr. Aslam Anis will discuss on the findings of his current research evaluating the impact of the pCPA tiered pricing framework on generic entry, the resulting drug expenditure levels from a drug plans’ perspective and, more importantly, the implications of price-capping policies on drug shortages.
Dr. Aslam Anis is a Professor in the School of Population and Public Health of the University of British Columbia. He is also the Director of the Centre for Health Evaluation and Outcome Sciences in Vancouver, Canada. Dr. Anis is one of Canada’s most distinguished health economists who has conducted numerous studies assessing the impact of various types of regulatory instruments and policies on the pharmaceutical marketplace in Canada. This includes price-cap regulations on brand-name and generic drug prices and their impact on the pharmaceutical market dynamics in Canada.
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Tuesday, 27 November 2018