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Carleton University School of Public Policy and Administration

Submission — Carleton University School of Public Policy and Administration

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Submitter(s): Gagnon, Marc-André

Summary: Canada artificially inflates the cost of prescription drugs by $2-billion to facilitate pharmaceutical R&D, while total private R&D expenditures in Canada are only $1.22-billion. After taking into account generous tax subsidies in R&D, drug companies in Canada spend, in fact, only a net amount of $533-million in R&D. Let's repeat this very clearly: Canadians pay $2-billion extra on prescription drugs in order to get in return a net expenditure of $533-million by drug companies. To promote pharmaceutical R&D, the Obama administration announced in January 2011 that it is creating a government research centre to develop medicines. Paying directly for public pharmaceutical R&D might be the best way to produce innovative drugs while reducing the cost burden for all Canadians.

Full submission: PDF Version