According to the PMPRB released data (which is gathered from the companies themselves), the R&D-to-sales ratio for members of Rx&D was 6.7% in 2011, down from 8.2% in 2010. The Rx&D ratio has now been less than 10% for the past nine consecutive years and is approaching its lowest level since tracking began in 1988. From a global perspective, Canada fares very poorly, ranking ahead of only Italy with countries such as France, Germany, Sweden, Switzerland, the U.K., and U.S. all seeing greater expenditures. In fact, the PMPRB notes that “several comparator countries, which have patented drug prices that are, on average, substantially less than prices in Canada, have achieved R&D-to-sales ratios well above those in Canada.”
Earlier this week, the chief Canadian negotiator on CETA appeared before the Standing Committee on International Trade and acknowledged the pressure from the EU to reform Canadian patent laws in support of RxD companies. He indicated that Canada has not responded to those demands. The time to respond has come: the RxD companies have failed to live up to their commitments for years and Canada will not offload billions in additional costs to taxpayers by implementing unnecessary patent reforms.