Scrip is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction

International reimbursement levels revealed in Canadian industry report

This article was originally published in Scrip

The Canadian pharmaceutical industry association, Rx&D, has published a report ranking OECD countries according to their public reimbursement of 150 innovative medicines (representing 181 indications in Canada), finding that Canada ranks 23 out of 29 countries, far behind the OECD average.

It finds the international "positive reimbursement percentage" average is 64%, with the US topping the list at 88%, and Poland at the bottom with 15%. Other countries doing well according to the rankings are Portugal, Greece, Germany and Norway (see table below).

It is no surprise to see some countries such as New Zealand at the bottom of the list (rank: 28) as its pharmaceutical management agency, Pharmac, is known to be a tough negotiator on reimbursement. But it is a surprise to see Japan at the bottom.

However, the report, now in its fourth year, sees the world from a Canadian perspective so that not all of the drugs/indications are available in all of the countries. Still it does give an indicator as to which countries are good at reimbursement.

Russell Williams, president of Rx&D, said the report reveals that less affluent countries than Canada are finding ways to provide greater access to innovative medicines through their public drug plans.

Australia's R&D industry association was concerned by Australia's ranking in the bottom third. Dr Brendan Shaw, Medicines Australia's chief executive, said: "In essence this report measures the willingness of governments to pay for new innovative pharmaceuticals and Australia doesn't stack up too well ... Australia is falling behind other countries in making innovative medicines available to patients. This report challenges policy makers in Australia to seriously rethink the allocation of the public healthcare dollar."

The 150 drugs in the report comprise 117 drugs (representing 132 indications) that have been reviewed by the Canadian Expert Drug Advisory Committee (CEDAC) of Canada's Common Drug Review from December 2003 (from its inception) to December 2009, plus 33 anticancer drugs (representing an additional 49 indications) that have been introduced in Canada over the last five years. (CEDAC makes recommendations to each of the participating federal, provincial and territorial publicly funded drug plans regarding the listing on their formularies.)

Mark Ferdinand, Rx&D's vice president of policy, research and analysis, told Scrip that the report could not make "conclusions" about countries other than Canada. "Our aim is to explore how other countries can reimburse these drugs while Canada has not."

He thinks that there are several different layers of the Canadian reimbursement process after a drug is approved that is delaying patients' access to drugs. Sometimes a patient can wait up to "two years" to access a drug on a public plan compared with a private plan, and in many instances these sort of patients include the "poor" and elderly. "Those other public plans [in other countries] are doing something right to reimburse these drugs, but Canada is not taking an individual approach on re-imbursement."

He says the next phase of the research is to look at other countries' reimbursement systems to identify "best practice" so Rx&D can then have a discussion with the Canadian government and other stakeholders. Next year's report will also contain reimbursement information for four new OECD members: Chile, Estonia, Israel and Slovenia.

Drug spending proportion

The report also ranks countries according to their pharmaceutical spending as a percentage of total health spending (see table). Canada spends about 17.2% of its total health expenditure on pharmaceuticals (this includes drug cost, distribution and professional fees and allowances), which is also the OECD average.

However, some countries, such as Greece and Portugal (above 20%) rely more on pharmaceuticals in the delivery of health services. The report notes that given the drug price-cuts seen this year in several countries and the looming patent cliff, "we can expect to see changes in this metric over the next few years".

The report also ranks countries according to reimbursement of "first-in-class medicines" and oncology drugs.

Rankings of Positive Reimbursement Percentages in OECD countries

Source: The Rx&D International Report on Access to Medicines 2009/10 (undertaken for Rx&D by health policy firm Wyatt Health Management); OECD Health Data 2010 (www.ecosante.org/oecd.htm).

Rank

 

Country

 

Pharmaceutical spend as % of total health spend

 

1 (88%)

 

US

 

11.9

 

2

 

Portugal

 

21.8

 

3

 

Greece

 

24.8

 

4

 

Germany

 

15.1

 

5

 

Norway

 

7.6

 

6

 

Italy

 

18.4

 

7

 

France

 

16.4

 

8

 

Belgium

 

16.4

 

9

 

Sweden

 

13.2

 

10

 

UK

 

11.8

 

11

 

Slovak Rep.

 

28.1

 

12

 

Switzerland

 

10.3

 

13

 

Austria

 

13.3

 

14

 

Finland

 

14.4

 

15

 

Denmark

 

8.6

 

Average (64%)

 

 

17.2

 

16

 

Netherlands

 

11.5

 

17

 

Iceland

 

13.9

 

18

 

Czech Republic

 

20.4

 

19

 

Australia

 

14.3

 

20

 

Ireland

 

17.3

 

21

 

Scotland

 

19.3

 

22

 

Republic of Korea

 

23.9

 

23 (51%)

 

Canada

 

17.2

 

24

 

Turkey

 

26.6

 

25

 

Japan

 

20.1

 

26

 

Spain

 

20.5

 

27

 

Luxembourg

 

8.4

 

28

 

New Zealand

 

9.4

 

29 (15%)

 

Poland

 

22.6

 

Topics

Latest Headlines
See All
UsernamePublicRestriction

Register

SC010727

Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Thank you for submitting your question. We will respond to you within 2 business days. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel