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Section II — Analysis of Program Activities by Strategic Outcome

Strategic Outcome

The Patented Medicine Prices Review Board (PMPRB) has one strategic outcome: Canadians and their health care system are protected from excessive prices for patented drug products sold in any market in Canada and key stakeholders are informed by pharmaceutical trends analysis.

The performance indicator for the strategic outcome is: Canada’s prices on average are in line with the seven comparator countries listed in the Regulations.

The target for the strategic outcome is: Canada’s prices on average are at or below the median of international prices.

The strategic outcome is supported by three Program Activities.

Program Activities


Program Activity 1: Compliance and enforcement of non-excessive prices for patented drug products
Human Resources (FTEs) and Planned Spending ($ thousands)
2011–2012 2012–2013 2013–2014
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
44.0 $7,464.8 44.0 $7,464.8 44.0 $7,464.8
Program Activity Expected Results Performance Indicators Targets
Prices charged by patentees for patented drug products in Canada are not excessive according to the factors of the Patent Act. Percentage of patented drug products that are within the Guidelines 95% of patented drug products are within Guidelines.

Summary of Program Activity

The Patented Medicine Prices Review Board (PMPRB) is responsible for regulating the non-excessive average prices for patented drug products sold in Canada for human or veterinary use. Through this program activity, the PMPRB reviews the prices that patentees charge for patented drug products, based on the price review factors in the Patent Act, to ensure that these prices are not excessive. In the event that the Board finds, following a public hearing, that a price is excessive in any market, it may order the patentee to reduce the price and take measures to offset any excess revenues it may have received as a result of excessive prices.

Planning Highlights

The PMPRB is responsible for ensuring that the prices that patentees charge, the “factory-gate” price, for patented drug products sold in Canada for human or veterinary use, are not excessive. The PMPRB relies on voluntary compliance whenever possible since it is less time consuming and less costly to all parties. Voluntary compliance by patentees is facilitated by published Guidelines, which are intended to assist patentees in setting prices that are not excessive by providing transparent and predictable information on how the price review will be carried out.

In order to ensure that the Guidelines remain appropriate and effective in the modern pharmaceutical environment, the Board, after extensive consultation with stakeholders, released revised Guidelines in June 2009.

The key priorities for the Compliance and Enforcement program over the planning period are:

  • Monitor and evaluate the impact of the new Guidelines.
  • Continue to provide proactive education and outreach to/with patentees.
  • Assess current and evolving environment in the Compliance Program in order to identify what, if any, changes can be implemented to increase efficiency of the price reviews of new and existing patented drug products and the investigation process.
  • Carry out a Foreign Price Verification study, which will provide an assessment of the trends in foreign prices of patented drug products.

Benefits for Canadians

This program activity contributes to the Government of Canada outcome of Healthy Canadians by ensuring that prices of patented drug products are not excessive. Price reviews, investigations and, when necessary, hearings must be conducted in a transparent, effective and timely fashion so as to protect the interests of consumers and the Canadian health care system.

Policy and economic analysis ensures that the PMPRB’s regulatory activities remain relevant, appropriate and effective in the context of the evolving pharmaceutical environment.


Program Activity 2: Pharmaceutical trends analysis
Human Resources (FTEs) and Planned Spending ($ thousands)
2011–2012 2012–2013 2013–2014
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
13.0 $1,438.7 13.0 $1,438.7 13.0 $1,438.7
Expected Results Performance Indicators Targets
Stakeholders are more aware of pharmaceutical trends and cost drivers. Number of requests for PMPRB publications

Number of presentations by PMPRB at external meetings
5% increase in requests over previous year

10 events per year

Summary of Program Activity

The PMPRB conducts research and analysis on pharmaceutical trends and reports annually to Parliament through the Minister of Health on pharmaceutical trends and research and development spending by pharmaceutical patentees. Through the National Prescription Drug Utilization Information System (NPDUIS), the PMPRB also conducts research and provides critical analyses of price, utilization and cost trends for both patented and non-patented prescription drugs.

Planning Highlights

Through this program activity, the PMPRB provides analysis of pharmaceutical price trends and research and development spending by pharmaceutical patentees. It also provides critical analyses of price, utilization and cost trends for prescription drugs, and information on non-patented prescription drug prices. The PMPRB reports on these analytical studies and its price review and enforcement activities as they relate to excessive pricing for patented drug products, annually to Parliament through the Minister of Health. The PMPRB also publishes specific NPDUIS reports based on the research and reporting priorities identified by the NPDUIS Steering Committee. 

The PMPRB will enhance the relevance and timeliness of reporting, provide credible pharmaceutical trend information and contribute to the information needs of a variety of policy decision-makers by:

  • developing a project management approach;
  • developing an annual plan and incorporating it into the strategic planning process in the fall;
  • responding to FPT information needs identified by the NPDUIS Steering Committee;
  • reporting to the NPDUIS Steering Committee on the progress of NPDUIS activities;
  • reporting on international Research and Development (R&D) Trends.
  • reporting to the office of the Minister of Health before the end of April each year;
  • developing and implementing a communications plan;
  • publishing NPDUIS reports and/or providing the results of relevant research analysis.

Benefits for Canadians

This program activity contributes to the Government of Canada outcome of Healthy Canadians by:

  • reporting on pharmaceutical trends and on R&D spending by patentees; and
  • providing critical analyses of price, utilization and cost trends so that Canada’s health system has more comprehensive and accurate information on how prescription drugs are being used and on sources of cost pressures and to inform drug policy decision-making.

Program Activity 3: Internal services
Human Resources (FTEs) and Planned Spending ($ thousands)
2011–2012 2012–2013 2013–2014
FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending
19.0 $2,951.5 19.0 $2,951.5 19.0 $2,951.5

Program Activity Summary

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Materiel Services; Acquisition Services; and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Planning Highlights

This program activity will continue to be devoted largely to ongoing activities designed to support program areas in the provision of their programs.

The key priorities for the Internal Services program over the planning period are:

  • Implementing the new Compliance Database.
  • Ensuring continuing internal capacity of Board Staff by implementing a succession planning and knowledge management program.
  • Co-ordinating the independent evaluation of PMPRB programs.