Having spent years claiming the CETA patent reforms would create economic benefits for Canada, Rx&D now says costs associated with the reforms are too difficult to predict. Responding to the internal government study, Rx&D says:
“The notion of trying to use retroactive thinking on an industry that’s going through huge change and offering more and more value and hope to our health care system and try to come up with a cost to our system – without even thinking of the value of it – is rather difficult to do. I think (it) is quite dangerous to base any public policy on it.”
The reality is that Rx&D has undoubtedly analyzed the economic impact of the potential patent reforms and expects to generate hundreds of millions of dollars in additional revenues. The math isn’t that complicated as the extension in patent term will keep generic alternatives off the market for years. The Rx&D companies know precisely how much revenue their patent drugs generate and the expected revenue decrease once generics enter the market. The government’s own analysis now says the patent reforms would cost billions. It must reject European demands with the bet that there is enough remaining value in CETA for both sides to reach agreement without creating a new multi-billion dollar burden on the Canadian health care system.