Slide 1

Pharmaceutical Overview20

Pharmaceutical Overview Pharmaceuticals are covered through public or private insurance Within a hospital setting drugs administered are covered throughpublic insurance Provinces and territories offer pharmaceutical insurance plans Plans differ in eligibility, premiums, coverage and formularydesign Canada top-10 pharmaceutical market in the world per capitaspending 2nd highest in the world Strong growth in per capita pharmaceutical spending since1990s Between 2000-2010 per capita spending almost doubled fromUSD 400.7 to USD 740.7 (PPP)21

Pharmaceutical SnapshotTotal spending on pharmaceuticals in 2011 C$32billion (CIHI)

Growth of 4% 2010-2011

Lower growth than in the past but still close to TEH AAGR

Prescription drugs account for close to 85% of total spending

Relatively even split between public and private financing ofprescription drugs: 45% vs. 55% Stronger growth rates in private financing (6.8%) vs. publicfinancing (2.2%) Large variations in per capita spending from province toprovince: C$576 in British Columbia and C$710 in Manitoba vs.C$937 in New Brunswick and C$985 in Nova Scotia Large variations in spending growth from province to province:1.4% in British Columbia and 2% in Ontario vs. 7.4% inSaskatchewan and 9.4% in Newfoundland and Labrador

22

Total Expenditure on Pharmaceuticals and Other MedicalNon-durables, % TEH, Canada, 1960-201023Source:OECD Stat(2012)18

16

14

12

10

8

6

4

2

02019601965197019751980198519901995200020052010

15

10Total Expenditure on Pharmaceuticals, % of TEH, 1990-2009,Canada and Select OECD Countries

25

205Source:OECD Stat(2012)

01990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

24CanadaUnited StatesGermanyJapanFrance

25(2012)200

100

0Total Per Capita Spending, Pharmaceuticals and OtherMedical Non-durables, US$ PPP, Canada, 1980-2010

800

700

600

500

400

300

Source:OECD Stat1980198219841986198819901992199419961998200020022004200620082010

Total Per Capita Spending, Pharmaceuticals and OtherMedical non-durables, US$ PPP, 2010 or Closest Year, OECD26Source:OECD Stat(2012)01002003004005006007008009001000