What we do

A collective approach to negotiation is better for everyone involved.

Canada’s public drug plans vary in size and resources. By negotiating as a collective, public drug plans can achieve better outcomes — that is, better prices on effective drug treatments — than any one jurisdiction typically could on its own. Working together allows all our members to sign agreements at the same lower price.  

It’s also easier for manufacturers to participate in a single negotiation, rather than separate negotiations with each public drug plan.

Negotiation decisions are made by consensus. Public drug plans work together before and during negotiations to speak with one voice. 

Each of the 14 federal, provincial, and territorial governments is part of decision-making, regardless of their size. They all have an opportunity to share their views, priorities, needs, and concerns. This collaborative approach ensures that everyone has been heard and the outcome is a decision that all public plans support.

Negotiating on behalf of the collective is a shared responsibility. Some negotiations are led by pCPA staff, while others are led in partnership by the pCPA and a drug plan. In all cases, the work is done on behalf of the collective.

Likewise, negotiation timelines are a shared accountability with drug manufacturers. All parties at the table play a role in ensuring efficient and timely negotiations. Good negotiations are a shared success.

Evidence is at the centre of every negotiation.

To inform our negotiations, we draw on data and research from many sources, notably health technology assessment (HTA) reimbursement recommendations, which assess a drug’s clinical value and cost-effectiveness. We may also request additional information from manufacturers.

This work typically begins when a drug file is opened at the pCPA and continues as the negotiation approach is refined. This evidence and other information about the drug — like whether it followed priority review pathways at Health Canada or is part of Project Orbis — informs how a negotiation will be prioritized and whether it’s eligible for any of our expedited negotiation pathways. 

This also helps shape a negotiation mandate, which must be approved by consensus before negotiation begins.

Just like not all drugs are the same, not all negotiations are the same. 
We use different negotiation pathways depending on factors such as whether a drug is brand-name, generic, or biosimilar; how complex the file is; and whether an expedited negotiation pathway is appropriate. 

Having multiple negotiation pathways allows us to use the right approach for each situation, while staying focused on the same goal: Timely negotiations that end with a pricing agreement that works for all negotiating parties.