Canadians spent $14.7 billion on drugs in 2000, an increase of about 10% over the previous year, the Canadian Institute for Health Information (CIHI) reports. And while the makers of brand-name drugs say this isn't necessarily a bad thing, the companies that make generic drugs say rising prices and increased patent protection are making drugs more inaccessible.
A CIHI report on drug expenditures (see Pulse column, page 1336) indicates that spending on drugs is expected to account for 15.5% of total Canadian health spending in 2000, making it the second largest category after hospital services. However, Canada's Research-based Pharmaceutical Companies — the organization representing manufacturers of brand-name drugs — says its members are not to blame because their prices are held in check by the Patented Medicine Prices Review Board. That board reports that total sales of patented drugs increased by 27; last year.
Jim Keon, CEO of the Canadian Drug Manufacturers Association, which represents makers of generic drugs, attributes this percentage increase to new, expensive drugs. However, Anie Perrault, a spokesperson for the brand-name companies, says the overall rise in drug expenditures is tied to an aging population and an increase in the number of therapies offered.
The increased spending “may mean that fewer people are going to hospital and to emergency and have a better quality of life,” adds Perrault. “We may be saving in other places.”
According to CIHI, the growth in drug expenditures averaged 9.2% between 1997 and 2000. Spending on all prescription drugs in 2000 increased by 10.6%, to $11.4 billion, while spending on nonprescription drugs (not including herbal remedies) increased by 4%.