AIUI, because they let the patent expire, the drug was not subject to price regulation by the government. So they could charge whatever.
And during most of that time, they were still protected by 'data exclusivity' which means that any generic producer could not get approved without doing their own clinical trials, until 8 years had passed.
So they gave up some period of exclusivity in return for being able to charge a higher price when they still had a monopoly.
The price in Canada is ~$175 USD month for name brand Ozempic where I am with no coupons, or other discounts. I see prices in the US around $800+/month.
That is significantly cheaper than the US, and cheaper than other GLP-1 class drugs up here, arguably reasonable. Is the supposition that they would have been forced to charge even less? If so, why are their competitors who kept their patents not charging more?
Counterpoint: Mounjaro/Tirzepatide did keep their patent protection. They are able to, and do, charge significantly more.
yes, the US govt is being shockingly lax in its IP enforcement here. i suspect it would be much harder to acquire if ozempic/wegovy were produced by an American company
That doesn't figure into the pricing strategy or giving away patent protection in Canada in 2018 as far as I can tell?
Compounding isn't allowed in Canada, currently, so I assume you are talking about the US? Compounding Ozempic in the US wasn't a thing in 2018 when this patent was released in Canada, so not sure what one has to do with the other.
What are you getting at in reference to the argument that the patent was released intentionally in order to charge a higher price?
Compounding isn't some shady enterprise. Its a standard medical use case. I have to use metronidozol cream on my face, but I'm allergic to some preservatives, so a compounding pharmacy makes a version of metronidozol cream without my allergens.
It's also relatively common for toddlers who need special doses, or for people who can't swallow pills and need liquid formulations.
No, with drug patents the price is the average of a basket of similar countries, including the US. There is bulk buying for some medications by governments, but it depends.
Most people are using private drug insurance in Canada.
Most of what time? The patent just expired a few months ago. Generics are now ramping up because the patent expired, not because of some hypothetical eight year clinical trials. And for that matter, generics of existing ingredients and dosages do not have to repeat clinical trials anyways, which is one of the big reasons generics are a lot less expensive.
This hypothesis seems retconned and completely at odds with the actual facts. Not least that there has been absolutely nothing exceptional about the pricing of their product in Canada, which has always been one of the cheaper pricings worldwide.
This article is saying that the patent elapsed in 2018 because thy didn’t pay the $250 to renew the patent. Instead they relied on “data exclusivity” which means their trial data is exclusively theirs and anyone who wants to sell in Canada must first run safety trials of their own at a huge expense. It’s just as good as a patent but has a shorter window of exclusivity.
> Instead they relied on “data exclusivity” which means their trial data is exclusively theirs and anyone who wants to sell in Canada must first run safety trials of their own at a huge expense.
And during most of that time, they were still protected by 'data exclusivity' which means that any generic producer could not get approved without doing their own clinical trials, until 8 years had passed.
So they gave up some period of exclusivity in return for being able to charge a higher price when they still had a monopoly.