Emerging trends in pharmaceutical marketing
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Emerging Trends in Pharmaceutical Marketing. Pricing Strategy Workshop. Some History…. The ODB froze the 1993/94 formulary prices Québec and Saskatchewan have policies where they need to have the best available price Resulted in almost no drug price inflation until 2003. But….

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Emerging Trends in Pharmaceutical Marketing

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Emerging trends in pharmaceutical marketing

Emerging Trends in Pharmaceutical Marketing

Pricing Strategy Workshop


Some history

Some History…

  • The ODB froze the 1993/94 formulary prices

  • Québec and Saskatchewan have policies where they need to have the best available price

  • Resulted in almost no drug price inflation until 2003


Emerging trends in pharmaceutical marketing

But…

  • Price difference between U.S. is increasing

  • Cross-border shopping has become a sizeable problem

  • Manufacturers are looking for solutions


Prices canada vs international

PricesCanada vs. International

Canadian prices are lower

Prices at par

Canadian prices are higher

Source: Annual Report, CEPMB, 1999-2004


Prices canada vs international1

PricesCanada vs. International

Canadian prices are lower

Prices at par

Canadian prices are higher

Source: Annual Report, PMPRB, 1999-2004


Prices canada vs international2

PricesCanada vs. International

Canadian prices are lower

Stronger currencies

Prices at par

Canadian prices are higher

Source: Annual Report, PMPRB, 1999-2004


Prices canada vs international3

PricesCanada vs. International

Canadian prices are lower

Weaker USD

Prices at par

Canadian prices are higher

Source: Annual Report, PMPRB, 1999-2004


Prices canada vs international4

PricesCanada vs. International

  • When compared to the U.S., U.K. and Switzerland, Canadian prices (patented drugs) are lower

  • Affected by exchange rates – lower Canadian dollar since 2002 (36-month average) is reversing trends

  • The difference with the U.S. is increasing

Increasing Internet sales

Pressures to reduce the difference


Prices canada vs international5

PricesCanada vs. International

New Products Launched:

  • Prices “at par” internationally

    Existing Products:

  • Price increases

    • Restricted by the PMPRB – bending the rules

    • Restricted by the provinces

?


Formulary increases by provinces

Formulary IncreasesBy provinces


Formulary increases and timing by provinces botox unit dose vial

Formulary Increases and TimingBy provinces, BOTOX (UNIT DOSE VIAL)

April 2004


Formulary increases and timing by provinces

Formulary Increases and TimingBy provinces


Formulary increases and timing by provinces1

Formulary Increases and TimingBy provinces


Are formularies the last answer

Are formularies the last answer?

  • Private Drug Plans are ±40% of the National drug market

  • Only few have managed formularies

  • Most are price takers, even with adjudication system


Price increases private data 2003 2004

Price Increases – Private Data2003-2004

  • Sample of 1200 DINs (72% of all Ontario private drug plan claims – July 2005)

    • Approximately 200 price increases on brand products form Jan. 2002 to July 2005

    • Approximately 25 price increases on generic products form Jan. 2002 to July 2005

    • 30 manufacturers

  • Most increases

    • 3%-6% (brand products)

    • 2% to 300% (generic products)


Brogan price index private drug plans

Brogan Price IndexPrivate Drug Plans

January 2002 = 1


Brogan price index versus inflation

Brogan Price IndexVersus Inflation

June 2003 = 1


Price increases conclusions

Price Increases – Conclusions

  • Depends on who is paying

  • Timing is everything – especially when the PMPRB is concerned

  • What is the reaction of all stakeholders?


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