Canada. Patented Medicine Prices Review Board : The regulation of the price of patented medicines in Canada has its origins in the first drug laws enacted in the country. In 1909, passage of the Proprietary or Patent Medicine Act required drug manufacturers to register all secret formula, non-pharmacopoeial medicines intended for internal use, and to note their presence on drug labels and wrappers.
During the 1960s, concern over Canada's high drug prices led to a series of three reports on Canada's drug patent laws. In response to these reports, the government amended the Patent Act to allow third parties to obtain compulsory licenses for the import of patented drugs into Canada. Compulsory licensing is a permit that circumvents patent protection by permitting other companies to manufacture and sell patent-protected drugs before the expiration of the patent.
In 1987 the government introduced Bill C-22, which amended the Patent Act to encourage drug research and development in Canada by protecting drug manufacturers' intellectual labour. It was designed to protect Canadian consumers from high drug prices, and to that end the amendment created the Patented Medicine Prices Review Board (PMPRB).
The PMPRB is an independent quasi-judicial body mandated to protect consumers and contribute to Canadian health care by ensuring that prices charged by manufacturers for patented medicines are not excessive. In the event that the Board finds, after a public hearing, that a price is excessive it may order the patentee to reduce the price and take measures to offset any excess revenues it may have received. The PMPRB is also mandated to contribute to informed decisions and policy making by reporting on pharmaceutical trends and on the R&D spending by pharmaceutical patentees.
The PMPRB comprises five members, appointed to the Board by the Governor in Council and is supported in its activities by PMPRB staff.
From 1987 to 1993 the PMPRB reported to Parliament through the Minister for Consumer and Corporate Affairs. Since an amendment to the Patent Act in 1993, the PMPRB has reported annually to Parliament through the Minister of Health.
