PDCI Market Access Inc. interviewed a representative from one of the pan-Canadian Pharmaceutical Alliance (pCPA) lead provinces and has produced an article providing guidance for negotiating with the pCPA. The pCPA has completed approximately 50 negotiations since it was established in 2010, but stakeholders are still looking for greater transparency and communication around its process, decisions, criteria, and timelines. The organization is in the process of taking its first steps to create a formal Office with dedicated resources which will allow for improved communication and clearer direction from the pCPA in the future. Until such an Office is established, this article is meant to provide some much needed guidance on how manufacturers should best deal with the pCPA to ensure a smoother negotiating process. The key points summarized in the article are PDCI’s interpretation of the discussion and have been vetted by all jurisdictions within the pCPA.

Some highlights from the article include:

• The pCPA does not currently have a formal process for pre-negotiation discussions, but is open to communicating with companies in advance of an HTA recommendation in specific circumstances.

• The key element of effective representation in negotiations is an individual who understands the pCPA process and objectives, dynamics of government and the drug funding process.

• Although the pCPA is flexible on the proposal format, PowerPoint presentations are preferred.

• It is important to put the proposal within this context of the national HTA review and recommendations for the product, but there is no need to provide extensive background on clinical or economic background material.

• The HTA recommendation informs the pCPA’s rebate expectations—it is starting point of the economic value equation.

• The duration of the agreement varies between jurisdictions and products. Agreements are typically 3 years in length, but some have been negotiated for shorter (2 years) or longer (no end) duration.

• While offering a steep rebate up front has been helpful in expediting the pCPA process, ultimately a robust proposal based on the HTA recommendation that addresses concerns raised by the pCPA is most helpful in driving faster negotiations.

Please select the following URL to download a complimentary copy of the article: www.pdci.ca/policy_articles/PDCI_pCPA_Negotiation_Article_Feb_2015.pdf

PDCI Market Access is grateful to the pCPA for the time and effort taken to help produce this document. Please contact Courtney Abunassar, PDCI’s Manager of Market Access and Policy Research if you have any questions or comments regarding this article.