In 2010, the provinces and territories announced the creation the Pan-Canadian Pricing Alliance (“PCPA”). The PCPA is an initiative aimed at joint negotiations on the prices of brand name drugs reimbursed by the provincial and territorial drug benefit plans. All brand name drugs considered for funding and reviewed through the Common Drug Review (CDR) or Pan-Canadian Oncology Drug Review (pCODR) are considered for negotiation through the PCPA. Quebec, Nunavut, the federal government and private plan sponsors do not participate in the PCPA.
As discussed in a previously published Pharma in Brief, the provinces are working to develop a framework to facilitate negotiations under the PCPA. IBM Healthcare Solutions, a consultant engaged by the provinces in 2013, has concluded its consultations and prepared a report on the manner in which the PCPA process could be structured, but it has not yet been made publicly available.
Summarized below is an update of the status of negotiations for brand name drugs going through the PCPA process.
Status of negotiations for brand name drugs
In February 2014, the Health Care and Innovation Working Group of the Council of the Federation began posting information on its website as to the status of PCPA negotiations, including the names of drug products involved in the PCPA negotiation process. The provinces report that as of February 28, 2014:
- 32 joint negotiations have been completed. A “completed” negotiation refers to negotiations which have resulted in a signed Letter of Intent outlining the agreed terms and conditions between the lead jurisdiction for the negotiation and the manufacturer;
- 12 drugs products are currently undergoing active negotiations;
- 14 drug products were denied PCPA and individual negotiations with the provinces; and
- 4 drug products have been recommended by the PCPA to be considered for negotiations by each province/territory individually.
Link to PCPA webpage: