Spending on drugs surpasses $10 billion
CMAJ 1998;158:456
© 1998 Canadian Medical Association
Data from the Patented Medicine Prices Review Board indicate that worldwide sales of pharmaceuticals totalled $365 billion in 1996, a 6.7% increase from 1995. In Canada sales reached $6.6 billion in 1996, up 10% from 1995, and represented 2% of the world market. Total spending on drugs in Canada, which includes retail markups, dispensing fees and personal supplies, accounted for 14.4% of total health expenditures, or more than $10 billion.
In 1996 the number of patented drug products in Canada stood at 917, an increase of 23% since 1991. The proportion classified as antineoplastics and immunomodulating agents has doubled since 1991 and now accounts for 7.2% of all patented drugs. Respiratory drugs, which in 1991 accounted for 10% of the total, declined to 5.6% in 1996. The largest group, with more than 176 patented products, continues to be general anti-infective products for systemic use; they represent almost 20% of the total. However, cardiovascular drugs account for the most revenue -- 28.5% of total sales from patented drugs.
The prices of patented medicines, as measured by the Patented Medicine Price Index, declined by 2.1% in 1996 -- the third consecutive annual decline. The price of nonpatented drugs increased 2.5% in 1996 and the average annual increase between 1988 and 1996 was 4.5%.
The number of drug products sold in Canada in 1996 reached 21 155, including 6000 prescription drugs. Eighty new patented human drug products were sold in Canada for the first time in 1996. -- Lynda Buske
| Percentage of revenue from patented drug sales in Canada, 1996, by category
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This column was written by Lynda Buske, chief, physician resources information planning, CMA. Readers may send potential research topics to Patrick Sullivan (sullip@cma.ca; 800 663-7336, x2126; fax 613 523-0937).
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