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Canadian drug prices: New regulations could save billions of dollars – CTV News

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OTTAWA –

New drug price regulations set to come into effect next month could lower spending on patented drugs by about seven per cent over the long term and save billions of dollars, the parliamentary budget officer reported Tuesday.

Health Canada first announced in 2019 that the Patented Medicine Prices Review Board would change how it sets a price cap on medicines in Canada in an effort to lower excessively expensive drug costs by changing the countries Canada compares prices with.

The changes are expected to come into effect on July 1, after being pushed back four times during the pandemic.

The PMPRB has a mandate to make sure drug costs don’t become excessively expensive, and one of the ways it does that is by comparing drug prices with other countries.

When a breakthrough drug is introduced to the market, the price is set at the median sticker price of seven comparable countries.

Over the years, drug prices abroad have become less transparent and the cost of drugs in the United States in particular has shot up drastically compared to Canada.

To fix the problem, Health Canada proposed changing the countries Canada compares prices with, and put forward a list of 11 countries with similar GDP per capita that no longer includes the United States.

If the changes had been in place in 2018, Canada would have spent 19 per cent less, representing about $2.8 billion, parliamentary budget officer Yves Giroux and his team found in their newly released report.

The magnitude of the impact was similar for 2021, though the pandemic made data from that year less reliable.

Future savings are hard to measure, especially when you’re talking about something as unpredictable as the development of new drugs, the report explained.

“The main objective of the exercise is not to attempt to provide an accurate measurement, but rather to gauge the importance of the change,” Giroux said in the report.

A 19 per cent savings would be significant, but whether those gains are realized depends on more specific rules the government has yet to settle on – like whether existing drugs will be grandfathered in at their current prices or be renegotiated under the new regime.

“We conclude that the proposed change may, over the long term, lower expenditures on patented drugs by seven per cent, reaching nineteen per cent if reassessment of prices occurs more frequently,” the report stated.

The government had initially planned several other regulatory changes to lower the cost of drugs but stood them down after they were successfully challenged in court by pharmaceutical companies and the Quebec government.

The move to change the list of countries Canada compares prices with has engendered resistance from industry and patient groups who worry the changes will impact access to new drug therapies in Canada.

Their fear is that lower prices will reduce the incentive for companies to bring innovative new drugs to the country.

That possibility wasn’t analyzed as part of the report, but the PBO says it’s important to remember that pharmaceutical companies spend a lot of money to develop new drugs, often without success.

The reason they make the effort is because of the potential rewards when they do find a therapy that works, particularly in the U.S. market where prices are high.

“At present, more of that (research and development) occurs in the U.S. than in the rest of the world,” Giroux said. “A strategy by Canada of free-riding on R&D expenditures in the U.S. and elsewhere is not tenable.”

This report by The Canadian Press was first published June 14, 2022.

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k.d. lang rocks with the Reclines at Canadian Country Music Association awards

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EDMONTON – The legendary k.d. lang got the band back together at the Canadian Country Music Association awards show.

Lang teamed up with the Reclines for the first time in 35 years to belt out “Big Boned Gal” from their last album together in 1989.

Clad in a blue and green western-style dress, lang strut across the stage in Edmonton to embody the “big boned gal from southern Alberta.”

The awards show saw Alberta’s MacKenzie Porter and Ontario’s Josh Ross take home hardware for being best female and male artists of the year.

Ross also won entertainer of the year and single of the year for “Trouble.”

Ontario artist Jade Eagleson won album of the year for “Do It Anyway.”

The James Barker Band from Woodville, Ont., won fans’ choice and group of the year.

During their acceptance speech, frontman Barker hinted at new music and a possible tour in 2025.

Ross says he and his band play roughly 150 shows every year and are never home, but says taking home entertainer of the year made the hard work worth it.

Porter won for female artist of the year and top video for “Chasing Tornadoes.”

The female artist win ends the five-year streak of Tenille Townes being awarded the coveted hardware.

Porter had been nominated seven times previously for the award in the past decade but hadn’t won until now.

The artist from Medicine Hat, Alta., says it takes a lot of hard work and hustle to succeed as a female in the country music industry and gave a shout out to her fellow singers and her newborn daughter.

Joining the two artists in the winners’ circle was Ontario singer-songwriter Owen Riegling, who won for breakthrough artist of the year.

The show began with American artist and co-host Thomas Rhett being dubbed an honorary Canadian by Edmonton Oilers players Corey Perry and Leon Draisaitl.

Rhett donned an Oilers jersey that was gifted to him by the pair.

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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Jade Eagleson wins album of the year at Canadian Country Music Association awards

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EDMONTON – Ontario country artist Jade Eagleson has won album of the year at the 2024 Canadian Country Music Association Awards in Edmonton.

The singer from Bailieboro, Ont., was up for six awards alongside Alberta’s MacKenzie Porter.

Eagleson took home album of the year for “Do It Anyway” and says he’s thankful to his wife and management team for helping him reach the level he’s at.

The James Barker Band from Woodville, Ont., also won fans’ choice and group of the year at the award show, held in Edmonton.

During their acceptance speech, frontman Barker hinted at new music and a possible tour in 2025.

Another Ontario crooner, Josh Ross, has taken home a trio of awards, receiving entertainer of the year, male artist of the year and single of the year.

He says he and his band play roughly 150 shows every year and are never home, but says taking home entertainer of the year makes the hard work worth it.

Porter took home female artist of the year, ending the five-year streak of Tenille Townes being awarded the coveted hardware.

Porter had been nominated seven times previously for the award in the past decade but hadn’t won until tonight.

The artist from Medicine Hat, Alta., says it takes a lot of hard work and hustle to succeed as a female in the country music industry and gave a shout out to her fellow singers and her newborn daughter.

Joining the two artists in the winners’ circle was Ontario singer-songwriter Owen Riegling, who won for breakthrough artist of the year.

The show began with American artist and co-host Thomas Rhett being dubbed an honorary Canadian by Edmonton Oilers players Corey Perry and Leon Draisaitl.

Rhett donned an Oilers jersey that was gifted to him by the pair.

The return of k.d. lang and the Reclines was expected to be a highlight of the show.

The appearance will mark the first time the Alberta songstress has teamed up with the band in 35 years and is tied to lang’s induction into the Canadian Country Music Hall of Fame.

The awards show is back in Alberta’s capital for the first time since 2014. It was held in Hamilton last year and in Calgary in 2022.

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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B.C. Conservatives promise to end stumpage fees, review fire management if elected

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VANDERHOOF, B.C. – British Columbia Conservatives are promising changes they say will bring more stability to the province’s struggling forest industry.

Leader John Rustad announced his plan for the sector a week before the official launch of the provincial election campaign, saying a Conservative government would do away with stumpage fees paid when timber is harvested and instead put a tax on the final products that are produced.

Rustad said Saturday that under a provincial Conservative government, a small fee may be charged upfront, but the bulk would come at the end of the process, depending on what type of product is created.

He also promised to review how wildfires are managed, as well as streamline the permit process and review what he calls the province’s “uncompetitive cost structure.”

“British Columbia is by far the highest cost producers of any jurisdiction in North America. We need to be able to drive down those costs, so that our forest sector can actually be able to do the reinvestment, to be able to create the jobs and make sure that they’re still there to be able to support our communities,” he said.

The governing New Democrats meanwhile, say eliminating stumpage fees would inflame the softwood lumber dispute with the United States and hurt forestry workers.

In a statement issued by the NDP, Andrew Mercier, the party’s candidate in Langley-Willowbrook, said Rustad failed to support the industry when he was in government under the former BC Liberals.

“Not only will Rustad’s old thinking and recycled ideas fail to deliver, his proposal to eliminate stumpage would inflame the softwood lumber dispute — punishing forestry workers and communities,” Mercier said, accusing Rustad of ignoring the complexity of the challenges facing the industry.

The softwood lumber dispute between the U.S. and Canada stretches back decades. In August, the U.S. Department of Commerce nearly doubled duties on softwood lumber.

International Trade Minister Mary Ng has said Canada has taken steps to launch two legal challenges under the Canada-United States-Mexico Agreement.

Rustad said a provincial Conservative government would push hard to get a deal with the United States over the ongoing dispute “whether it’s with the rest of Canada or by itself.”

He said his party’s proposed changes are in the name of bringing “stability” and “hope” to the industry that has seen multiple closures of mills in rural communities over the last several years.

Most recently, Canfor Corp. decided to shutter two northern British Columbia sawmills earlier this month, leaving hundreds of workers unemployed by the end of the year.

According to the United Steelworkers union, Canfor has closed 10 mills in the province since November 2011, including nine in northern B.C.

Jeff Bromley, chair of the United Steelworkers wood council, said Saturday the idea of changes in favour of taxing the final product has been floated in the past.

He said the finer details of the Conservative plan will be important, but that the system needs to be improved and “new ideas are certainly something I’d be willing to entertain.”

“Something needs to happen, or the industry is just going to bleed and wither away and be a shadow of its former self,” Bromley said.

“Politics aside, if (Rustad) can come up with a policy that enables my members to work, then I would be supportive of that. But then I’m supportive of any government that would come up with policies and fibre for our mills to run. Period.”

When Canfor announced its latest closures, Forests Minister Bruce Ralston said the sector was a “foundational part” of the province and the current NDP government would work to support both local jobs and wood manufacturing operations.

This report by The Canadian Press was first published Sept. 14, 2024

The Canadian Press. All rights reserved.



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