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
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
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