Healthy Skepticism Library item: 16142

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Spencer C.
Pharma companies overcharged for patented drugs
Toronto Sun 2009 Jul 28
http://www.torontosun.com/news/canada/2009/07/28/10294071-sun.html

Full text:

Canadian pharmaceutical companies overcharged for patented drugs by about $27 million last year, according to the watchdog agency that regulates prices.

In its annual report, the Patented Medicine Prices Review Board says the companies involved have either paid the federal government a fee, reimbursed customers, or reduced prices to offset the incorrect charges.

For the fiscal year 2008-09, seven companies were judged to have set prices too high on nine new patented medicines – adding up to about $27.3 million. And already in 2009, the board says two companies set prices too high – resulting in almost $15 million in “excess revenues.”

Since it began issuing orders or negotiating voluntary repayments from drug companies in 1993, the review board has arranged the payback of about $77.7 million, the report says.

Sales of patented drugs in Canada added up to about $13 billion in 2008, an increase of 5% over 2007. The figures don’t include “generics”: products similar to brand-name drugs but not under patent.

Eight drugs are currently the subject of review board hearings, including the popular anti-smoking patch Nicoderm, which has been the subject of a board investigation and legal action for more than a decade.

The board says 78 patented drug products were introduced in Canada in 2008. Sixty were found to be within pricing guidelines, while 18 were either under review or being investigated.