Search

The Commission recommends some major modifications and extensions to policy specific to the industry. The processleading to authorization for marketing should become more rapidand more consultative. The terms on which compulsory licencesare issued should ensure that the licensing firms pay their shareof the research and development and promotion expenditures fromwhich they benefit. Royalties should be distributed to thepatent-holding firms in such a way as to encourage research inCanada. Provincial plans should provide consumers with greaterknowledge about what drugs are substituitable and greaterinformation on prices and should give them incentives to seek outcheaper drugs.

The Commission recommends some major modifications and extensions. The process leading to authorization for marketingshould become more rapid and more consultative. The terms onwhich compulsory licences are issued should ensure that thelicensing firms pay their share of the research and developmentand promotion expenditures from which they benefit. Royaltiesshould be distributed to the patent-holding firms in such a wayas to encourage research in Canada. Provincial plans shouldprovide consumers with greater knowledge about what drugs aresubstitutable and greater information on prices and should givethem incentives to seek out cheaper drugs.

The paper discusses the merits and drawbacks of the patent system, notes thespecial features of the pharmaceutical industry and analyses optional patentsfrom a global perspective and in light of national considerations.

The document details the background to the present regulatory environmentand asseses the need for new regulations and guidelines. It makes a numberof recommendations, pertaining to new drugs vs old drugs, drug scheduling, pharmaceutical chemistry, product monographs, toxicological requirements, clinical research, drug approval, orphaned drugs, and other issues.

The goal of this report is twofold, first to specify an equilibrium model that captures the empirical realities of the pharmaceutical industry, and second, to evaluate alternative informational policies to guarantee an effiecient market for pharmaceutical products. It examines product promotion in pharmaceutical markets and the demand and supply of pharmaceuticals.