Effective February 9, 2015 and until this process is transitioned to the pan-Canadian Pharmaceutical Alliance (pCPA) office, Saskatchewan will serve as the single point of entry for the pan-Canadian generic price tier confirmation process. The Saskatchewan Drug Plan will verify that the Tiered Pricing Framework applies to the product, determine the appropriate price tier (see table below), and advise the manufacturer and all participating jurisdictions of the appropriate price tier.
Manufacturers are requested to submit the Tiered Pricing Confirmation Form electronically to PCPAGenerics@health.gov.sk.ca for all new generic products. Submission to the price tier confirmation process may be done concurrently with listing submissions to individual jurisdictions.
|Tiered Pricing Framework for New Generic Drugs|
|Pan-Canadian Generic Value Price Initiative – Generic Pricing Framework1|
|Category2 Description||% of Brand||Progression||Notes|
|New single source (i.e., only one manufacturer of a generic drug)||75% of brand if PLA or pricing agreement for brand exists in any jurisdiction.
Other single source: 85%
Products at this level will be reassessed after 2 years3
|As soon as another manufacturer begins selling its version of the drug in any jurisdiction, the price of the drug will drop to the next tier (i.e. 75% to 50% to 25%)||1 year retro-activity on this section of the pricing framework
Option for PT to retain PLA or pricing agreement with brand if provides better value
|Two generics||50%||Option for PT to retain PLA or pricing agreement with brand if provides better value|
|Three or more generics||25% Oral solid4
35% All dosage forms other than oral solids (e.g., liquids, patches, injectables, inhalers, etc.)
|Pan-Canadian 18% group – Current Molecules|
|Pan-Canadian 18%||18% Oral solid||amlodipine besylate, atorvastatin, citalopram hydrobromide, *clopidogrel bisulfate, *gabapentin, *metformin, *olanzapine, pantoprazole sodium, ramipril , omeprazole 20mg, rabeprazole sodium, rosuvastatin calcium, simvastatin, venlafaxine HCl
*Effective April 1, 2015
|1 This framework will be reassessed after 3 years.
2 Price reduction to the next pricing tier is triggered by market entry of additional competitors.
3 After 2 years PTs will reassess continued listing of the single source product against international prices and the number of Notice of Compliance approvals that Health Canada has granted for the drug.
4 Modified release products, will be treated the same as regular tablets and capsules.
Additional PDCI pan-Canadian Reimbursement Related Resources
After interviewing a representative from one of the pCPA lead provinces, PDCI produced an article in February 2015 that provides guidance for negotiating with the pCPA. A copy of the article is available at: http://www.pdci.ca/policy_articles/PDCI_pCPA_Negotiation_Article_Feb_2015.pdf
In October 2014, PDCI completed a benchmarking survey on the pCPA to gain a better understanding of the pCPA experience from the company perspective. A copy of the report is available at: http://www.pdci.ca/policy_articles/PDCI_pCPA_Benchmarking_Survey_Report_October_2014.pdf
Please contact Courtney Abunassar, Manager of Market Access and Policy Research, if you have any questions or comments regarding the above.