Newsletter October 2008
volume 12, issue no 4
Table Of Contents
    - News from the Chairperson
- Since our last issue…
- Comings and Goings
- Hearings
- Human Drug Advisory Panel (HDAP) 2009 Schedule
- List of New Drugs Introduced Since the Publication of the July 2008 NEWSletter
- Report on New Patented Drug — Lucentis
- NPDUIS Update
- Board Meeting
- Upcoming Events
News from the Chairperson
 This   past August, the Board released a Notice and Comment on its draft   revised Excessive Price Guidelines, soliciting submissions from its   stakeholders by October 6, 2008. These draft revised Guidelines come on   the heels of extensive consultations with stakeholders over the last   three years.
This   past August, the Board released a Notice and Comment on its draft   revised Excessive Price Guidelines, soliciting submissions from its   stakeholders by October 6, 2008. These draft revised Guidelines come on   the heels of extensive consultations with stakeholders over the last   three years.
The Board received a total of 44 submissions, all of which are posted on our Web site.
To assist stakeholders, Board Staff held information sessions in   mid-September to summarize the Board´s positions reflected in the draft   revised Guidelines as well as those recommendations of the various   Working Groups that the Board did not pursue. It was also an opportunity   to clarify the content of the draft revised Guidelines and to respond   to questions stakeholders may have
had on the document.
It has been the Board´s objective to ensure that the Guidelines   remain relevant and appropriate in the context of an ever evolving   pharmaceutical environment. The Board remains committed to provide   transparency and predictability in its price review process, important   elements to offering guidance to patentees. To that end, the Board met   with the Board of Directors of Rx&D on October 21, 2008 and with   representatives of BIOTECanada on October 22, to further discuss the   draft revised Guidelines and issues which remain of concern to the   industry.
On October 22, the Board also met to review the submissions and   discuss next steps. The Board is continuing with its assessment of the   submissions and will update stakeholders of its progress through the Web   site and in upcoming issues of the NEWSletter.
On behalf of my colleagues, I take this opportunity to thank all   those who have taken the time to review the draft revised Guidelines and   provide the Board their thoughtful and valuable feedback.
Brien G. Benoit, MD, Chairperson
Since our last issue…
Our recent key events
August 18: The Board released a Communiqué to update stakeholders on its work in regard to the Patented Medicines Regulations and to announce the release of its draft revised Excessive Price Guidelines on August 20th, 2008.
August 20: The Board released its Notice and Comment   on the draft revised Excessive Price Guidelines. The deadline for   submission was October 6, 2008.
The Board resumed its hearing in the matter of sanofi-aventis Canada Inc. and the medicine Penlac Nail Lacquer.
September 11: The Human Drug Advisory Panel held a teleconfence.
September 4, 9, 12, 15, 19: Board Staff held information sessions with stakeholders on the draft revised Excessive Price Guidelines.
October 6: The Board heard the parties on   preliminary issues in the matter of Apotex Inc. as a patentee under the   jurisdiction of the PMPRB. The Hearing Panel´s decision, dated October   27, 2008, is available on our Web site.
October 21: The Board met with the Board of Directors of Rx&D on the draft revised Excessive Price Guidelines.
October 22: The Board met with representatives of   BIOTECanada on the draft revised Excessive Price Guidelines. The Board   met to review and discuss stakeholders´ submissions on the Notice and   Comment on the draft revised Excessive Price Guidelines.
October 27: The Board held a pre-hearing conference in the matter of ratiopharm Inc. and the medicine ratio-Salbutamol.
October 28: Delia Lewis participated at the Canadian Institute´s 8th Annual “Advanced Administrative Law and Practice” Conference, Ottawa.
October 28-29: Ginette Tognet and Barbara Ouellet   did a presentation on the price review process and the draft revised   Excessive Price Guidelines, at the Brogan Advanced Training Seminars   held in Montréal and in Toronto.
October 30: Sylvie Dupont did a presentation to a delegation of the Department of Health of Tunisia on the regulatory role of the PMPRB.
Comings and Goings
Over   the last quarter, we were pleased to have Patricia Hum return to the   Legal Branch. Robin Main joined our Corporate Services Branch as Records   Manager. In November, Gregory Gillespie will be joining the PMPRB as   Director of the Policy and Economic Analysis Branch. Also, Ruth Keays   will join the Compliance and Enforcement Branch.
We would also like to offer our best wishes to Lyne Bélisle,   Communications Officer, who left the PMPRB to take on new challenges   with the Canadian Intellectual Property Office (CIPO) and to Marta   Rivas, who joined the administrative arm of the RCMP.
Finally, we would like to congratulate Frank Parisotto, who retired   after 35 years in the Public Service, and thank him for his valuable   contribution to the PMPRB. All the very best for a well deserved   retirement Frank! 
Hearings
The PMPRB´s regulatory mandate is to ensure that   patentees´ prices for patented drugs sold in Canada are not excessive,   thereby protecting consumer interests and contributing to Canadian   health care. In the event that the price of a patented drug product   appears to be excessive, the Board can hold a public hearing and, if it   finds that the price is excessive, it may issue an Order to reduce the   price and to offset revenues received as a result of excessive prices.   The Board´s decisions are subject to judicial review in the Federal   Court (FC).
 
Adderall XR, Shire Canada Inc.
The Board issued an Order on August 27, 2008 for the price reduction   of Adderall XR and the offset of excess revenues accrued by Shire Canada   from the sale of the medicine.
Shire complied with the Board Order by reducing the price of Adderall   XR and offsetting excess revenues received for the period of September   12, 2002 to December 31, 2007, by paying $5,622,863.63 to Her Majesty in   Right of Canada.
As for excess revenues accrued for the period of January 2008 to   September 15, 2008, the date on which the price reduction of Adderall XR   came into effect, Shire shall pay to Her Majesty in Right of Canada a   further amount equal to the amount of the excess revenues estimated by   the Board to have been derived by Shire from the sale of Adderall XR in   its 5, 10, 15, 20, 25 and 30 mg strengths at excessive prices and make   the payment within 30 days of receipt of a notification from the Board   of its estimate of excess revenues based on the information filed with   the Board.
The Board Order is posted on our Web site.
Apotex Inc.
The Board heard the parties on preliminary matters on October 6, 2008   and issued its decision under date of October 27. The Panel will   release a detailed schedule on this proceeding in the next few weeks.
Apo-Salvent CFC Free, Apotex Inc.
In its decision, dated October 27, the Board granted ratiopharm Inc.   leave to intervene in this matter. The full text of the decision is   available on our Web site. A revised schedule in this matter will be   released shortly and posted on our Web site.
Copaxone, Teva Neuroscience G.P.-S.E.N.C.
On May 12, 2008, the Board issued an Order and reasons in the matter   of Teva Neuroscience G.P.-S.E.N.C. and its medicine Copaxone. Teva has   filed applications for judicial review of the Board´s decision and Order   in this matter with the Federal Court (FC). No hearing date has yet   been scheduled.
Nicoderm, sanofi-aventis Canada Inc.
On July 3, 2008, the Board heard the parties on their joint   submission to conclude this proceeding. The Panel issued its decision on   July 21 to resume the hearing into the price of Nicoderm.   sanofi-aventis Canada Inc. filed an application with the Federal Court   for judicial review of the Board's July 21 decision. The FC has not yet   scheduled a date to hear the application. The Board's hearing in the   Nicoderm matter resumes on November 21.
Penlac, sanofi-aventis Canada Inc.
At its August 20 hearing in this matter, the Panel agreed to hear   Board Staff´s Motion for the issuance of two orders, the first for the   production of data and studies by sanofi-aventis, and the second, to   seek leave to call expert reply evidence on this new data.
The Board granted a variation on the relief sought on the Motion and   issued an Order on August 20. The hearing in this matter is set to   resume on December 8.
Quadracel – Pentacel, sanofi pasteur Limited
The hearing is set to resume on November 25-27, 2008. The final session in this matter is scheduled for January 5-7, 2009.
ratiopharm Inc.
This matter is on hold, pending the Board's decision on ratiopharm´s   motion for the consolidation of this matter and that of   ratio-Salbutamol. Upon release of the Board's decision, a revised   schedule will also be issued.
ratio-Salbutamol, ratiopharm Inc.
The pre-hearing conference in this matter was held on October 27,   2008. The Panel will release its decision on preliminary matters,   including the consolidation of this matter and that of ratiopharm´s   failure to file, in the next few weeks.
Strattera, Eli Lilly Canada Inc.
The hearing in this matter will resume on January 27, 2009.
Adderall XR is indicated for the treatment of Attention Deficit Hyperactivity Disorder (ADHD).
Apo-Salvent CFC Free is a new DIN of an   existing dosage form of an existing bronchodilator medicine (salbutamol   sulphate) which relieves chest tightness and wheezing caused by spasms   or narrowing in the small air passages of the lungs.
Copaxone 20 mg/1.0 mL syringe is a new   formulation of an existing compound (glatiramer acetate) indicated for   use in ambulatory patients with Relapsing-Remitting Multiple Sclerosis   to reduce the frequency of relapses.
Nicoderm is a transdermal smoking   cessation patch. Penlac is indicated as part of a comprehensive nail   mana - gement program in immunocompetent patients with mild to moderate   onychomycosis of fingernails and toenails without lunula involvement.
Penlac is indicated as part of a   comprehensive nail management program in immunocompetent patients with   mild to moderate onychomycosis of fingernails and toenails without   lunula involvement.
Pentacel is indicated for the routine   immunization of all children between 2 and 59 months of age against   diphtheria, tetanus, whooping cough (pertussis), poliomyelitis and   haemophilus influenzae type b disease. It is sold in Canada in the form   of a reconstituted product for injection combining one single dose vial   of Act HIB (Lyophilized powder for injection) and one single (0.5 mL)   dose ampoule of Quadracel (suspension for injection).
Quadracel is indicated for the primary   immunization of infants, at or above the age of 2 months, and as a   booster in children up to their 7th birthday against diphtheria,   tetanus, whooping cough (pertussis) and poliomyelitis.
ratio-Salbutamol HFA is a new DIN of an   existing dosage form of an existing bronchodilator medicine (salbutamol   sulphate) which relieves chest tightness and wheezing caused by spasms   or narrowing in the small air passages of the lungs.
Strattera is indicated for the treatment   of Attention Deficity Hyperactivity Disorder (ADHD) in children 6 years   of age and over, adolescents and adults.
 
The HDAP is composed of three members who hold   qualifications as physicians, pharmacists or other professional   designation with recognized expertise in drug therapy and who have   experience in clinical research methodology, statistical analysis and   the evaluation of new drugs.
 
    
        
            | HDAP Meeting/ Conference Call | Information | Deadline | 
        
            | February 19, 2009 | 1 copy of product monograph or information similar to   that included in a product monograph (if product has not yet been   approved for sale in Canada) 7 copies of company submission | November 19, 2008 December 19, 2008 | 
        
            | May 15, 2009 | 1 copy of product monograph or information similar to   that included in a product monograph (if product has not yet been   approved for sale in Canada) 7 copies of company submission | February 16, 2009 March 16, 2009 | 
        
            | September 17, 2009 | 1 copy of product monograph or information similar to   that included in a product monograph (if product has not yet been   approved for sale in Canada) 7 copies of company submission | June 17, 2009 July 17, 2009 | 
        
            | November 19, 2009 | 1 copy of product monograph or information similar to   that included in a product monograph (if product has not yet been   approved for sale in Canada) 7 copies of company submission | August 19, 2009  September 19, 2009 | 
    
List of New Drugs Introduced Since the Publication of the July 2008 NEWSletter
Twenty-two   new DINs for human use (representing 19 medicines) were added to the   list of Patented Medicines reported to the PMPRB for the period ending   September 30, 2008. Seven of these new medicines are new active   substances representing 10 DINs.
The following table presents the new active substances reported to the PMPRB during the period July to September 2008.
New patented drug products come under the PMPRB´s   jurisdiction once they are both patented and sold in Canada. If a   patented drug product was just sold during the patent pending period   (after the date when the patent was laid open for public inspection and   before patent grant), the PMPRB´s policy is to review the price of the   product back to the date of first sale.
 
As of September 30, 2008
    
        
            | Brand Name | Generic Name | Company | Therapeutic Use | 
        
            | Lucentis (3 mg/vial)* | ranibizumab | Novartis Pharmaceuticals Canada Inc. | Treatment of Neovascular (wet)  Age-Related Macular Degeneration (AMD) | 
        
            | Myozyme (50 mg/vial) | alglucosidase alfa | Genzyme Canada Inc. | Treatment of Pompe´s Disease | 
        
            | Nimotuzumab (50 mg/vial) | nimotuzumab | YM Biosciences Inc. | Cancer Treatment | 
        
            | Pradax (75 mg/capsule, 110 mg/capsule) | dabigatran etexilate | Boehringer Ingelheim (Canada) Inc. | Venous Throembolic Events (VTE) | 
        
            | Revlimid (5 mg/capsule, 10 mg/capsule) | lenalidomide | Celgene Corporation | Anemia | 
        
            | Volibris (5 mg/tablet, 10 mg/tablet) | ambrisentan | GlaxoSmithKline Inc. | Pulmonary Arterial Hypertension | 
        
            | Zevalin (3.2 mg/vial) | ibritumomab tiuxetan | Bayer Inc. | Treatment of Non-Hodgkins Lymphoma | 
    
* Summary Report on this drug product is published in this NEWSletter.
Report on New Patented Drug — Lucentis
Under   its transparency initiative, the PMPRB publishes the results of the   reviews of new patented drug products by Board Staff, for purposes of   applying the Board´s Excessive Price Guidelines (Guidelines) for all new   active substances introduced in Canada after January 1, 2002.
Generic Name: ranibizumab
DIN: 02296810 (10 mg/mL)
Patentee: Novartis Pharmaceuticals Canada Inc.
Indication – as per product monograph:
For the treatment of neovascular (wet) age-related macular degeneration (AMD).
Date of Issuance of First Patent Pertaining to the Medicine: June 10, 2008
Notice of Compliance: June 26, 2007
Date of First Sale: July 26, 2007
ATC Class: S01LA
Sensory Organs; Ophthalmologicals; Ocular Vascular Disorder Agents; Antineovascularisation Agents
Application of the Guidelines
Summary
The introductory price of Lucentis was found to be within the   Guidelines because the price in Canada did not exceed the median of the   prices of the same drug product in the comparator countries listed in   the Patented Medicines Regulations (Regulations) in which Lucentis was sold.
Scientific Review
Lucentis is a new active substance and the PMPRB´s Human Drug   Advisory Panel (HDAP) recommended that Lucentis be classified as a   category 2 new medicine (a breakthrough or provides a substantial   improvement over comparable existing medicines). The HDAP did not   recommend any comparators for the conduct of a Therapeutic Class   Comparison (TCC) test.
Price Review
Under the Guidelines, the introductory price of a category 2 new drug   product will be presumed to be excessive if it exceeds the higher of   the prices of all the comparable drug products based on the TCC test and   the median of the international prices identified in an International   Price Comparison (IPC) test. See the PMPRB's Compendium of Guidelines,   Policies and Procedures for a more complete description of the   Guidelines.
As no comparators were identified for the purposes of conducting a   TCC test, the introductory price of Lucentis was considered within the   Guidelines as it did not exceed the median of the international prices   identified in an IPC test. Lucentis was sold in the seven countries   listed in the Regulations.
Introductory Period (July to December 2007)
    
        
            | Country | Country Price (In Canadian Dollars) | 
        
            | Canada | $1,575.0000 | 
        
            | France | $1,775.5884 | 
        
            | Germany | $1,858.3958 | 
        
            | Italy | $1,939.0296 | 
        
            | Sweden | $1,659.5728 | 
        
            | Switzerland | $1,737.1947 | 
        
            | United Kingdom | $1,595.5728 | 
        
            | United States | $2,336.0069 | 
        
            | Median | $1,775.5884 | 
    
Sources:
Canada: Ontario Formulary Online Edition Version 1.4, August 2007
France: Sempex, August 2007
Germany: Rote Liste, July 2007
Italy: L'informatore farmaceutico, December 2007
Sweden: Prislista, December 2007
Switzerland: Medwin website, Jul-Dec07
UK: MIMS, December 2007
US: Federal Supply Schedule (FSS), Jul-Dec07;
Thomson Micromedex Wholesale Acquisition Cost (WAC), October 2007
The publication of the Summary Reports is part of the PMPRB´s commitment to make its price review more transparent.
Where comparators and dosage regimens are referred to in   the Summary Reports, they have been selected by the HDAP for the purpose   of carrying out the PMPRB´s regulatory mandate, which is to review the   prices of patented medicines sold in Canada to ensure that such prices   are not excessive.
The PMPRB reserves the right to exclude from the   therapeutic class comparison list any drug product if it has reason to   believe it is being sold at an excessive price.
In its Summary Reports, the PMPRB will also refer to the   publicly available prices of comparators provided such prices are not   more than 10% above a non-excessive price in which case no price will be   made available. As a result, the publication of these prices is for   information purposes only and should not be relied upon as indicating   the public prices are considered within the Guidelines.
The information contained in the PMPRB´s Summary Reports   should not be relied upon for any purpose other than that stated and is   not to be interpreted as an endorsement, recommendation or approval of   any drug, nor is it intended to be relied upon as a substitute for   seeking appropriate advice from a qualified health care practitioner.
NPDUIS Update
The National Prescription Drug Utilization Information   System (NPDUIS) is a research initiative jointly conducted by the PMPRB   and the Canadian Institute for Health Information. NPDUIS seeks to   provide policy-makers with information and insights on trends in prices,   utilization and costs of interest to participating public drug plans   (all federal and provincial drug plans participate in NPDUIS except   Québec).
 
A meeting of the NPDUIS Steering Committee was held on October 3rd in   Ottawa. An update on current NPDUIS projects was provided. Work is   progressing well on two projects that are looking respectiveley at the   impacts of demographic changes and dispensing fees on public drug plan   expenditure. Ongoing methodological work is focusing on the use of   Defined Daily Dose (DDD) in drug costs and utilization analyses, and   more detailed cost decomposition using day supply data. The NPDUIS   Steering Committee provided very valuable feedback on work underway.
Two NPDUIS projects are nearing completion:
    - The second edition of the New Drug Pipeline Monitor (NDPM) will be posted on our Web site in November, 2008. In addition to   highlighting new pipeline drugs, this edition will profile the five   cancer drugs that were identified in the first edition. Furthermore, in   conjunction with the release of this second edition, the PMPRB will   release an interactive drug list which will provide accurate and   up-to-date information on the drugs that have been selected.
- The development of a standard methodology and guidelines for   producing reliable short to medium term forecasts of drug plan   pharmaceutical expenditure is well underway. It is expected that the Guidelines for Forecasting Program Expenditure for Canadian Public Drug Plans will be published in early 2009. 
NPDUIS studies and reports are posted on our Web site under Reporting; NPDUIS.
 
Board Meeting
The   Board met on October 22, to review and discuss stakeholders submissions   on the Notice and Comment on the Draft Revised Excessive Price   Guidelines.
The next Board meeting is scheduled for December 11, 2008
Upcoming Events
November 2008
November 5-7: DIA´s 6th Canadian Annual Meeting – Benefit and Risk Management: An Evolution in Progress, Ottawa
November 11: World Generic Medicines Congress Americas 2008 – The Business of Affordable Medicines, Washington, DC
November 12: HDAP Teleconference
November 21: Hearing – Nicoderm, sanofi-aventis Canada Inc.
November 24-27: Procurity Conference, Scottsdale, Arizona
November 25-27: Hearing – Quadracel and Pentacel, sanofi pasteur Limited
December
December 3-4: 7th Annual Market Access Conference, Toronto  
December 4-5: 2008 Life Sciences Invitational Forum – Is Canada Competitive
in the Life Sciences, Montebello
December 8: Hearing – Penlac, sanofi-aventis Canada Inc.
December 11: Board Meeting, Ottawa
January 2009
January 5-7: Hearing – Quadracel and Pentacel, sanofi pasteur Limited
January 27-29: Hearing – Strattera, Eli Lilly Canada Inc.
February 2009
February 11-13: Hearing – Strattera, Eli Lilly Canada Inc.
April
April 29-30: Pharmaceutical Pricing Summit, London, UK
May/June
May 29: 2008 PMPRB Annual Report to the Minister of Health  
May/June 31-1-2: Canadian Council of Administrative Tribunals (CCAT) 25th Annual Conference, Halifax