According to a recent survey [1], a majority of Canadians (77 per cent) recognize that innovation – in the medical field as well as other sectors – is essential to the future prosperity of the country. Canadians view encouraging new discoveries and innovations as a more important factor in economic prosperity than cutting business taxes or reducing red tape.

According to a recent report from the Canadian Institute for Health Information (CIHI) [1], which examined 2.4 million recorded hospital stays (outside of Quebec), an average patient stay in Canada costs almost $7,000. The study focused on the cost of treating those patients admitted to hospital for at least one night and does not include the cost of emergency care, day surgery, long-term care, hospital clinics or fee-for-service payments to physicians.

The study also concluded that underlying chronic conditions or their complications account for almost 30% of money spent on inpatient care in Canadian acute care hospitals. Some examples of underlying chronic conditions include diabetes, chronic obstructive pulmonary disorder and pneumonia.

The European Commission, European Medicines Agency and the U.S. Food and Drug Administration recently adopted a common application form for drug makers seeking orphan designation for their medicines. This will simplify the drug approval process and spur innovation by allowing companies to apply for approval of their new product in both the US and across Europe at the same time. In addition, this new process will help the regulatory agencies to better understand each other's systems. [1]

Canadian consumers continue to pay high prices for generic drugs according to a recent report by the Competition Bureau. [1] Generic drug manufacturers vying for shelf space in pharmacies often offer deep rebates to pharmacies as incentives to select a particular manufacturer's product. These rebates are not typically reflected in amounts paid for drugs by public or private drug plans, or out of pocket by consumers.