PDCI Market Access - PMPRB CPI Adjustment Factors, Allowable Price Increases

2010 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2009 ASP)
2007 or earlier	2007	5.0%	2.9%
2008	2008	2.6%	-
2009	2009	1.9%	-

2009 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2008 ASP)
2006 or earlier	2006	6.5%	3.0%
2007	2007	4.2%	3.0%
2008	2008	2.0%	-

2008 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2007 ASP)
2005 or earlier	2005	6.6%	3.6%
2006	2006	4.5%	3.6%
2007	2007	2.4%	-

2007 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2006 ASP)
2004 or earlier	2004	6.5%	3.2%
2005	2005	4.2%	3.2%
2006	2006	2.1%	-

2006 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2005 ASP)
2003 or earlier	2003	6.2%	3.0%
2004	2004	4.3%	3.0%
2005	2005	2.0%	-

2005 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2004 ASP)
2002 or earlier	2002	7.0%	3.3%
2003	2003	4.1%	3.3%
2004	2004	2.2%	-

2004 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2003 ASP)
2001 or earlier	2001	7.0%	2.7%
2002	2002	4.6%	2.7%
2003	2003	1.8%	-

2003 Allowable Increases in Average Selling Prices (ASP)*

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2002 ASP)
2000 or earlier	2000	7.7%	4.2%
2001	2001	5.1%	4.2%
2002	2002	2.8%	-

* Allowable increases noted are based on actual CPI figures for 2003 and are significantly higher than the PMPRB's original estimates. Pursuant to PMPRB policy, allowable increases are based on the higher of the actual and the estimated change in CPI. Companies are encouraged to confirm these figures with the PMPRB.

2002 Allowable Increases in Average Selling Prices (ASP)*

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2001 ASP)
1999 or earlier	1999	7.7%	3.5%
2000	2000	4.8%	3.5%
2001	2001	2.3%	-

*Updated to reflect actual CPI used by PMPRB

2001 Allowable Increases in Average Selling Prices (ASP)*

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 2000 ASP)
1998 or earlier	1998	7.2%	3.8%
1999	1999	5.3%	3.8%
2000	2000	2.5%	-

*Updated to reflect actual CPI used by PMPRB

2000 Allowable Increases in Average Selling Prices (ASP)*

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 1999 ASP)
1997 or earlier	1997	5.5%	4.1%
1998	1998	4.5%	4.1%
1999	1999	2.7%	-

*Updated to reflect actual CPI used by PMPRB

1999 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 1998 ASP)
1996 or earlier	1996	4.9%	2.6%
1997	1997	3.2%	2.6%
1998	1998	2.2%	-

1998 Allowable Increases in Average Selling Prices (ASP)

Year Introduced (first sold)	Benchmark Year	Allowable Increase over ASP in Benchmark Year	PMPRB 1 Year Cap (Allowable Increase over 1997 ASP)
1995 or earlier	1995	5.0%	2.7%
1996	1996	3.4%	2.7%
1997	1997	1.8%	-

PMPRB CPI Guideline

The Patented Medicine Prices Review Board (PMPRB) Guidelines allow the prices of patented medicines to increase by no more than the increase in the Consumer Price Index (CPI) calculated over a three year period. In addition, price increases over the previous year are limited to 1.5 times the projected inflation rate of the year in which the increase will take place. The specific wording of the PMPRB�s CPI Guideline is:

The price of an existing medicine during the period under review will be presumed to be excessive if it exceeds the benchmark price of the DIN adjusted for the cumulative change in the Consumer Price Index (CPI) from the benchmark period to the pricing period under review (CPI Adjusted Price).
In addition, one year price increases may not exceed 1.5 times the forecast change in the annual CPI.
In periods of high inflation (over 10%), the limit will be five percentage points more than the annual forecast change in the annual CPI.

Important Notes

The "Year Introduced" refers to the year in which the medicine is first sold in Canada as a patented medicine (with or without a Notice of Compliance).
The "Benchmark Year" refers to the year to which the Board�s 3 year CPI methodology is applied.
The "Average Selling Price (ASP) in the Benchmark Year" used in the calculation is the lower of the actual average selling price in that year and the maximum non-excessive (MNE) price for that year as calculated by Board staff.
The "1 Year Cap" is the maximum 1 year percentage increase allowed over the previous year�s ASP (or MNE price if that is lower).
All price increases are further constrained by the Board�s International Price Guideline which limits the prices of all patented medicines from exceeding the range of prices in the seven comparator countries (France, Germany, Italy, Sweden, Switzerland, United Kingdom, United States).
The official PMPRB CPI Guideline is now available online at www.pmprb-cepmb.gc.ca