Pharmaceutical companies that provide deep discounts for drugs to the Ontario Drug Benefit (ODB) appear to be “in a panic” after the provincial government released details on participating drug makers and the rebates they supply, reports the Globe and Mail.
The ODB—one of the largest purchasers of pharmaceuticals in the world—capitalizes on its purchasing power by demanding steep price reductions of up to 40% for public service benefits plan members. In return, it protects the details of such agreements so that manufacturers are not constantly faced with similar pricing demands from other clients.
However, Ontario’s Information and Privacy Commissioner recently ordered the government to release documents that reveal not only the names of 47 drug makers that have contracts with the ODB, but the amount of quarterly payments they return to the government. While this information is relatively useless to the average Canadian, manufacturers fear that the competition—and other clients—can use it to deduce what kind of deal the ODB is getting.
According to the Globe, the government feels that because it hasn’t specifically revealed details of the contracts, it has stuck to its end of the bargain with manufacturers. However, from the tone of a letter from Russell Willimans, president of Canada’s Research-Based Pharmaceutical Companies (known as Rx&D), manufacturers are alarmed.
“It appears that highly sensitive and commercial information of our members has been disclosed, despite the [Health] Ministry’s attempts to resist disclosure,” writes Williams. “To the extent that, as it appears, the actual amount of the quarterly payments made by individual manufacturers has been disclosed, this could well reveal the specific volume discount negotiated for a particular drug.
“We cannot emphasize enough the importance of providing notice to companies where information requested relates to their product,” Williams adds.
There has been grumbling in the private sector for some time that corporate benefits plans end up subsidizing mammoth public plans like the ODB, and revelations such as this are likely to provide fuel for the fire.
Also tucked into the letter is a carefully worded warning that further disclosures of this kind will force manufacturers to reconsider their agreements with the ODB.
“We are seeking to prevent further disclosures of our members’ highly sensitive information, which disclosure will not only be harmful to our members but will also be harmful to the Ministry.”
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