2017 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2017. These factors were based on the actual rate of CPI inflation of 0.9% in 2013, 2.0% in 2014 and 1.1% in 2015.

CPI-Based Price-Adjustment factors for 2017
Benchmark Year 2014 2015 2016
Price-Adjustment Factor 1.040 1.031 1.011

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2014 and 2017 of 4.0% for patented drug products with Canadian sales in 2014; (2) a maximum allowable cumulative price increase between 2015 and 2017 of 3.1% for patented drug products with Canadian sales in 2015; and (3) a maximum allowable cumulative price increase between 2016 and 2017 of 1.1% for patented drug products with Canadian sales in 2016.

The year-over-year price increase cap for the 12-month period ending December 2017 is 1.7% (=1.5 x Actual Inflation in 2015).

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