Challenges and InnovationIndustry view

Claudia Neuber

Pharma 2020

Vancouver

February 2013

STRICTLY CONFIDENTIAL – NOT TO BE DISTRIBUTED EXTERNALLY

The views expressed in this document are those of the author.

They do not necessarily represent the views

of AstraZeneca Canada Inc or Rx&D and its members.

Disclaimer

Pricing – it used to be simple....

• One price for all customers.

• No product listing agreements.

• Limited tenders.

• Stable environment.

• Limited price referencing.

Payer

Parent company

Pharmaceutical Pricing in Canada

A Complex Market

National

• Patented Medicines Prices Review Board

• Common Drug review, pCODR - all but Quebec

• PWGSC contracting for certain products

Canada represents about 2-3% of most global businesses

Provinces

• Product listings, PLA and contract

negotiations

• 40 private payers

• Differential pricing

• Pharmacist practices and regulations

• Public Health programs and

vaccinations programs

International Price Referencing

Ref. http://apps.who.int/medicinedocs/en/d/Jh2951e/2.3.5.html WHO workshop on differential pricing in 2001

• Significant financial implications for industry if you get it wrong

• Complex and constantly changing

• Requires active monitoring and management

Launch Timing

Ref: Sarah Ray, Cutting Edge Information, February 1, 2013

Opportunities and challenges

Trust and dialogue

Recognition of differences

Complex situations

A rapidly changing environment

Managing expectations