Friday, March 12, 2010

Ontario pharma rebate program threatened by freedom-of-information disclosure

From today's Globe and Mail (Adam Radwanski):

For the past four years, Ontario has been buying brand drugs for well below the going rate. But an elaborate payment system has been set up to prevent anyone else from finding out exactly how much the government has been paying.

Now, that information might be on the verge of becoming public. And drug companies, fearing national and even international repercussions, appear to be in a panic.

In addition to the size of the rebates, another issue is the terms under which the rebate is given - for example, if the deal obligates the Ontario government to purchase beyond the expiration date of related patents, there is the possibility of antitrust/competition law or patent misuse/abuse problems with the deal.

No comments: