Section III - Supplementary Information
Organizational Information
The Board consists of not more than five members who serve on a part-time basis, appointed by the Governor-in-Council, including a Chairperson and Vice-Chairperson. In
June 2006, the Vice-Chairperson, Dr. Benoit, was appointed as Chairperson and Mary Catherine Lindberg was appointed Member and Vice-Chairperson for a 5 year term. At
present one Board position remains vacant.
The Chairperson is designated under the Patent Act as the Chief Executive Officer of the PMPRB with the authority and responsibility to supervise and direct
its work. The Executive Director manages the work of the staff. Senior staff consists of the Executive Director, the Director of Compliance and Enforcement, the Director
of Policy and Economic Analysis, the Director of Corporate Services, the Secretary of the Board and Senior Counsel.
The Compliance and Enforcement Branch is largely responsible for the review of patented medicine prices and the Compliance and Enforcement Policy. The Policy and
Economic Analysis Branch is largely responsible for conducting analyses and preparing reports on price trends and other economic studies. The Secretariat, Corporate
Services Branch and Senior Counsel provide Board communications, administrative and legal support.
Table 1: Departmental Planned Spending and Full Time Equivalents
($ thousands) |
Forecast
Spending
2005-2006 |
Planned
Spending
2006-2007 |
Planned
Spending
2007-2008 |
Planned
Spending
2008-2009 |
Patented Medicine Prices Review |
|
|
|
|
Budgetary Main Estimates (gross) |
4,373.0 |
6,512.011 |
6,480.011 |
4,948.013 |
Less: Respendable revenue |
|
|
|
|
Total Main Estimates |
4,373.0 |
6,512.0 |
6,480.0 |
4,948.0 |
Adjustments: |
|
|
|
|
Second Governor General Special Warrants |
|
|
|
|
For work under the National Prescription Drug Utilization Information System and for the reporting of non-patented drug prices in Canada under
the National Pharmaceuticals Strategy |
370.0 |
- |
- |
- |
Third Governor General Special Warrants |
|
|
|
|
For work under the National Prescription Drug Utilization Information System and for the reporting of non-patented drug prices in Canada under
the National Pharmaceuticals Strategy |
863.0 |
- |
- |
- |
Other |
|
|
|
|
Employee Benefit Plan (EBP) Year-end adjustment |
18.3 |
- |
- |
- |
Total Adjustments |
1,251.3 |
- |
- |
- |
Total Planned Spending |
5624.3 |
6,512.0 |
6,480.0 |
4,948.0 |
|
|
|
|
|
Total Planned Spending |
6,489.8 |
6,512.0 |
6,480.0 |
4,948.0 |
Less: Non-Respendable revenue |
(1,413.3)10 |
- |
- |
- |
Plus: Cost of services received without charge |
779.6 |
871.2 |
877.4 |
832.9 |
Net cost of Program |
4,990.6 |
7,383.2 |
7,357.4 |
5,780.9 |
|
Full Time Equivalents |
45.0 |
48.012 |
47.012 |
39.013 |
Table 2: Program Activities
2006-2007 |
($ thousands) |
Budgetary |
|
|
Program Activity |
Operating |
Gross |
Respendable
Revenue |
Net |
Total Main Estimates |
Total Planned Spending |
Patented Medicine Prices Review |
6,512.0 |
6,512.0 |
|
6,512.0 |
6,512.0 |
6,512.0 |
Total |
6,512.0 |
6,512.0 |
|
6,512.0 |
6,512.0 |
6,512.0 |
Table 3: Voted and Statutory Items listed in Main Estimates
2006-2007
($ thousands) |
Vote or Statutory Item |
Truncated Vote or Statutory Wording |
2006-2007
Main Estimates |
2005-2006
Main Estimates14 |
25 |
Program expenditures |
5,800.0 |
3,848.0 |
(S) |
Contributions to employee benefit plans |
712.0 |
525.0 |
|
Total Agency |
6,512.0 |
4,373.0 |
Table 4: Services Received Without Charge
($ thousands) |
2006-2007 |
Accommodation provided by Public Works and Government Services Canada (PWGSC) |
590.0 |
Contributions covering employers' share of employees’ insurance premiums and expenditures paid by Treasury Board of Canada Secretariat
(excluding revolving funds) Employer’s contribution to employees’ insured benefits plans and expenditures paid by TBS |
281.2 |
2006-2007 Services received without charge |
871.2 |
Table 5: Sources of Non-Respendable Revenue
Non-respendable Revenue
($ thousands ) |
Forecast
Revenue
2005-2006 |
Planned
Revenue
2006-2007 |
Planned
Revenue
2007-2008 |
Planned
Revenue
2008-2009 |
Patented Medicine Prices Review
Source of non-respendable revenue |
|
|
|
|
Voluntary Compliance Undertakings |
1,413.315 |
- |
- |
- |
Total Non-respendable Revenue |
1,413.3 |
- |
- |
- |
1 The reduction in the estimated planned spending and FTEs for 2008-2009 is due to the expiration of the Memorandum of Understanding
between the PMPRB and Health Canada to fund the PMPRB's work under the NPDUIS and a reduction in funding the PMPRB received to enhance its price review process through
Health Canada's Therapeutic Access Strategy. It is expected that new funding arrangements will have been negotiated prior to the expiration of the current MOU.
2 The reduction in the number of FTEs for 2007-2008 is due to a reduction in funding provided through a Memorandum of Understanding
between the PMPRB and Health Canada for the PMPRB to monitor and report on prices of non-patented prescription drugs.
3 A summary of the Excessive Price Guidelines is available in Section II page 16 of this Report. Additional information on the
Guidelines can be found in Chapter 1 of the Compendium of Guidelines, Policies and Procedures which is available on the PMPRB website: www.pmprb-cepmb.gc.ca, under Legislation, Regulations, Guidelines.
4 Additional information on the criteria for commencing an investigation can be found in Schedule 5 of the Compendium of
Guidelines, Policies and Procedures which is available on the PMPRB website: www.pmprb-cepmb.gc.ca, under Legislation,
Regulations, Guidelines.
5 The reduction in the estimated planned spending and FTEs for 2008-2009 is due to the expiration of the Memorandum of Understanding
between the PMPRB and Health Canada to fund the PMPRB's work under the NPDUIS and a reduction in funding the PMPRB received to enhance its price review process through
Health Canada's Therapeutic Access Strategy. It is expected that new funding arrangements will have been negotiated prior to the expiration of the current MOU.
6 The reduction in the number of FTEs for 2007-2008 is due to a reduction in funding provided through a Memorandum of Understanding
between the PMPRB and Health Canada for the PMPRB to monitor and report on prices of non-patented prescription drugs.
7 The PMPRB has no authority over the prices of non-patented drugs, including generic drugs sold under compulsory licenses, and does
not have jurisdiction over prices charged by wholesalers or retailers or over pharmacists' professional fees. Also, matters such as distribution and prescribing are
outside the purview of the PMPRB.
8 IMS Health, Canadian Health and Pharmacy Audit
9 See the PMPRB's A description of the Laspeyres Methodology used to construct the Patented Medicine Price Index (PMPI),
March 1997, revised June 2000, for a detailed explanation of the PMPI. The PMPI measures the overall change in the prices of existing patented drug products, and is
constructed by taking a sales-weighted average of rates of price change at the level of individual products. It is not designed to measure the effects of changes in the
quantities of drugs consumed or substitution among drugs (for example, the use of newer drugs in place of older, and possibly less costly drugs) on sales. As of the 1999
Annual Report, the PMPI encompasses prices of patented drugs for human use only.
10 The money reported as non-respendable revenue does not represent revenues generated by the PMPRB. This money is a result of
payments made by patentees to the Government of Canada through Voluntary Compliance Undertakings (VCUs) or Board orders to offset excess revenues. In 2005-2006 the Board
accepted 5 VCUs. Additional information on VCUs is available on the website: www.pmprb-cepmb.gc.ca, under Publications,
Voluntary Compliance Undertakings.
11 The Treasury Board Ministers have approved supplementary funding of $5.1 million for fiscal years 2006-2007 and 2007-2008 for
the PMPRB to conduct public hearing and modernize the Excessive Price Guidelines. In 2007-2008 the PMPRB will seek approval to revise its permanent funding to reflect
ongoing operational needs.
12 The increase in the number of FTEs for 2006-2007 and 2007-2008 is a result of additional resources provided through a
Memorandum of Understanding between the PMPRB and Health Canada for the PMPRB to monitor and report on prices of non-patented prescription drugs.
13 The reduction in the estimated planned spending and FTEs for 2008-2009 is due to the expiration of the Memorandum of
Understanding between the PMPRB and Health Canada to fund the PMPRB's work under the NPDUIS and a reduction in funding the PMPRB received to enhance its price review
process through Health Canada's Therapeutic Access Strategy. It is expected that new funding arrangements will have been negotiated prior to the expiration of the current
MOU.
14 The reduction in estimated total planned spending and full-time equivalents for 2005-2006 is a result of the fact that funding
arrangements for NPDUIS had not been finalized beyond 2004-2005. Continued funding for NPDUIS was approved in 2006-2007.
15 The money reported as non-respendable revenue does not represent revenues generated by the PMPRB. This money is a result of
payments made by patentees to the Government of Canada through Voluntary Compliance Undertakings or Board orders to offset excess revenues. The Minister of Health may
enter into agreements with any province respecting the distribution to that province of amounts received by the Receiver General, less any costs incurred in relation to
the collection and distribution of those amounts.
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