News Release
1997-30
April 25, 1997
Ministers welcome call for change in parliamentary report on Patent Act
OTTAWA - In response to the recommendations contained in the Standing Committee on Industry's report on its review of the Patent Act Amendment Act, 1992, Industry Minister John Manley and Health Minister David Dingwall reaffirmed the need to protect intellectual property rights, enhance research and development activities and ensure affordable drug prices.
Ministers welcomed the committee's report. It calls for change and gives positive direction for improving Canada's drug patent policy, said Mr. Manley.
"The Committee's report reflects the concerns of Canadians about drug costs and their impact on the health care system," said Mr. Dingwall. "Consistent with the views of the Committee and the National Forum on Health, the government is already taking concrete steps with the provinces and territories to explore the possibility of a national pharmacare program."
Ministers agreed with the Committee on the need to strengthen the Patented Medicine Prices Review Board (PMPRB) and to work closely with the provinces and territories to consider broadening its mandate to include non-patented drugs. They noted that the government is prepared, if asked by the provinces, to make the necessary changes to give the PMPRB authority to administer provincial controls on prices of non-patented medicines. Ministers also agreed to work with the PMPRB to review the mechanisms for regulating the prices of patented drugs and to improve the transparency of the price review process.
Ministers also agreed with the Committee on the need for the pharmaceutical industry to increase significantly research and development expenditures and challenged brand name, generic and bio-pharmaceutical companies to increase their research and development spending in Canada to reach international levels. For its part, the federal government has put in place a framework and programs which encourage and support R&D in the health sector. This framework includes the intellectual property regime, generous tax credit incentives and support for health science infrastructure. In the last budget, the Government also announced a wide range of investments as proof of its commitment to research and development.
"In reviewing Canada's drug patent policy," said Mr. Manley, "the Committee has concluded that Canada must maintain the standard of 20 years of patent protection in order to satisfy our international trade obligations. We agree and we will maintain those obligations."
Ministers noted that the Committee's specific recommendation on the regulatory framework for drug patent policy called for change to address stakeholder concerns to achieve fairness and effectiveness, and reduce unnecessary litigation. Ministers noted that in addressing the need for change, we must be guided by the need to strike the right balance between ensuring effective enforcement of patent rights and ensuring that generic drug products can hit the marketplace immediately after patent expiry. To that end, they endorsed the need to consult on a priority basis with key stakeholders on what changes are required to the regulations and how these changes could be implemented.
Ministers thanked the Standing Committee members for their thorough review of Patent Act issues and for providing valuable advice for the future, and thanked Canadians for taking the time to make their views known.
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Information:
Bill Milliken
Office of the Minister of Industry
(613) 995-9001
Franca Gatto
Office of the Minister of Health
(613) 957-0200.
Public Inquiries:
(613) 957-2991
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