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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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Petting farm in Campbell River, B.C., culls entire bird flock over avian flu outbreak

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A petting farm on Vancouver Island says it was forced to cull its entire flock of about 50 chickens and ducks when they contracted the highly infectious avian flu.

In the post to social media, Holly Hill Farm in Campbell River says it is “devastated,” noting each bird had a name, but it was forced to kill the flock “to prevent the spread and help protect food sources.”

It says Island Health has assured them the risk to their guests is “extremely low,” although recent visitors should monitor themselves for flu-like symptoms for 10 says after their visit to the farm.

A spokesman with Interior Health confirmed it had been made aware of the outbreak, saying its public health communicable team is monitoring the situation.

Dominic Abassi says the health authority has directly followed up with people and groups who visited the petting farm and has advised anyone who came into contact with the animals to monitor for symptoms — though he too noted that the risk of transmission to humans is very low.

The farm says the rest of its animals are safe but it will continue to monitor them to ensure they stay in good health.

The Canadian Food Inspection Agency has said it believes migratory birds are responsible for the outbreaks in small and commercial poultry flocks.

The agency reports there are currently 15 infected farms in the province, and the latest update as of Oct. 25 says more than six million birds have been culled in the province because of the outbreaks.

Holly Hill Farm says in its social media post that it had contacted both Island Health and the CFIA immediately, setting off the instruction to cull the animals.

“Our flock was humanely killed, and in accordance with the Canadian Food Inspection Agency, it will only take about 14 days after the cleaning to have chickens and ducks again,” it says, though it noted the farm may not replace its flock.

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.



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Ontario to go on ‘charm offensive’ in U.S. after Donald Trump victory, minister says

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TORONTO – Ontario is set to go on a “charm offensive” in the United States in the coming weeks now that Donald Trump has won the presidential election.

Premier Doug Ford and Economic Development Minister Vic Fedeli said government representatives will head down south to protect jobs and promote trade.

“I call it a charm offensive to remind them that we need each other for both economies to grow,” Fedeli said Wednesday.

Trump has vowed to renegotiate the Canada-United States-Mexico Agreement, which Ford said will be crucial to the province’s fortunes.

“We’re going to work with president-elect Trump as we did at the beginning of the administration and we just want to work and have a fair trade deal,” Ford said.

Fedeli is set to go to Washington, D.C., in December and again in January, followed by a tour of three states.

He said Ontario is the top trading partner to 17 states and second to 11 other states.

“And we have something that they’ll always want, and that’s our critical minerals and our energy,” he said.

Trump has also criticized electric vehicles and has mused about ripping up government subsidies, including the Inflation Reduction Act that President Joe Biden put in place in 2021.

Those deals helped lure automakers to build EV-related plants in the U.S. while Canada was forced to match those production tax credits in deals with Stellantis and Volkswagen, both of which are building EV battery plants in the province.

Ford said he’s not worried about it.

“I believe that’s going to be the way of the future: EV vehicles,” he said.

“We have a tremendous amount of investments involved in the sector, but we have the critical minerals that the U.S. needs.”

Ontario and the federal government have bet big in recent years on the electric vehicle market. Ford envisions an end-to-end manufacturing chain that sees critical minerals mined up north, then processed and brought south to be used to make EV batteries.

Ford said he spoke with Deputy Prime Minister Chrystia Freeland Tuesday night about protecting Ontario and Canadian jobs.

“We’re united with the federal government and we’re going to be united with all the premiers,” he said.

Ford dealt with the Trump administration for a few years after his Progressive Conservatives won the 2018 Ontario election. He said he visited Trump’s former trade guru, Robert Lighthizer, who was contemplating tariffs on Canadian goods. Ford said he told him not to do it.

But Trump and Lighthizer didn’t listen and put tariffs on Canadian steel and aluminum.

“I went back and said (to Freeland): tariff everything,” Ford said.

Canada responded with tariffs on a laundry list of goods, which eventually forced Trump to back down on the steel and aluminum tariffs.

“This is about a Can-Am approach, a Canada-America approach, making sure that we’re doing the best thing to protect Canadian and Ontario jobs and American jobs,” Ford said. “We’re the closest allies in the world.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.



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Swimming Canada CEO Ahmed El-Awadi steps down to pursue other opportunities

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TORONTO – Ahmed El-Awadi is stepping down as the chief executive officer of Swimming Canada.

The governing body said Wednesday that El-Awadi is leaving to pursue other opportunities and spend more time with family.

El-Awadi joined Swimming Canada as CEO in 2013. He had been on a personal leave of absence since May 25, 2023.

Canada has become a consistent medal contender in the pool on his watch, particularly on the women’s side.

Toronto’s Summer McIntosh was one of the big stars of the 2024 Summer Olympics in Paris with four medals (three gold, one silver).

She has also won seven long-course world championship medals (four gold, one silver, three bronze) among other hardware.

Other swimmers to flourish since 2013 include Toronto’s Penny Oleksiak (six Olympic medals, including one gold), Maggie Mac Neil of London, Ont., (three Olympic medals, including one gold, seven short-course world titles) and Kylie Masse of LaSalle, Ont., (five Olympic medals, three world titles).

“We commend Ahmed on what he has accomplished with Swimming Canada over the course of his 11-year tenure,” Swimming Canada past president Mary C. Lyne said in a release.

“During his time with us, Ahmed was a key contributor to the success of Swimming Canada, growing the organization from a small staff of 10 to a globally recognized leader in swimming.”

Swimming Canada said Suzanne Paulins will continue to serve as acting CEO. Paulins joined Swimming Canada’s staff in 2017 and became a director in 2021.

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.



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