Responding To The Corporate Siren Call

The other day, I posted about our successive governments' inability to resist the siren call of the corporate imperative, wedded as they are both socially and ideologically to their summons. In my previous post, I explored how postal banking fell victim to that imperative. Today I explore another example of our representatives' unseemly subjugation of the electorate's well-being to the demands of their real overlords. 

Pharmaceuticals constitute yet another powerful tail that wags the government dog. The genesis of the problem lies both in the disastrous privatization of Connaught Labs and the extension of drug patent protections, both occurring under the aegis of former prime minister Brian Mulroney, a man who never met a corporation he didn't like. Since the former is widely known, it is the latter that I shall deal with here, en route to a larger point.

The problem goes back to 1987, when

pharmaceutical corporations promised to spend 10 per cent of their revenue on research and development in Canada in exchange for longer monopoly patents (and therefore bigger profits) on the drugs they produce. 

That was known as Bill C-22, (which also created the Patented Medicine Prices Review Board, which I shall return to momentarily).

The pharma promise turned out to be a false one. A 2014 study conducted by the Council of Canadians found that 

companies actually spent less than half that – in fact just 4.5 per cent – of their sales in 2013 on research. The National Post reports, “It is more evidence that the industry’s long-standing attempt to link patent protection with research investment holds little water, say experts in the area.”

Despite this, the Trudeau government is still clearly in the thrall of Big Pharma, as reflected in recent actions by Health Minister Jean-Yves Duclos.

The NDP has called for a parliamentary investigation into allegations the Liberal government caved to corporate lobbyists who oppose changes to drug pricing reforms, as Ottawa faces pressure over the long-delayed process to rein in pharmaceutical costs.

The demand comes as three members of the Patented Medicine Prices Review Board (PMPRB), the country’s drug pricing regulator, resigned — including two this week — after the government asked the board to pause consultations on a reform that Parliament’s budget watchdog estimates could save Canadians billions of dollars in drug costs. 

Earlier this week, online media outlet The Breach reported that Health Minister Jean-Yves Duclos penned a letter to the board’s acting chair requesting the pause due to stakeholder and industry concerns. One of the resigning review board members also slammed Duclos and the government, alleging they chose to echo corporate opposition to the changes and undermined the board’s work to keep drug prices in check.

“It is difficult enough for a sector-specific regulator to do its job in the face of a hostile industry. But when the government adds its voice to that of industry, all that lies before the regulator is an endless tunnel with no light,” wrote former board member Matthew Herder in his resignation letter this week.

The board's work is extremely important, and what is at stake is quite significant:

The regulations have been in the works since 2016, and they would allow the board to consider the market size, as well as the costs and benefits of certain drugs before it determines prices for Canadians. The proposed rules would also permit the board to change the list of countries it uses for price comparisons, among other things.

When Big Pharma went to court over the proposals, the Quebec Court of Appeal ruled some parts were unconstitutional; the Trudeau government didn't even bother to appeal.

“In choosing not to seek leave to appeal, the government effectively countenanced the evisceration of its own reform,” [resigning board member Matthew] Herder said.

Grovelling before Big Pharma has a long and odious history. As reported in The Breach, because Canadians pay among the highest drug prices in the world, in 2017 the government launched something called Protecting Canadians from Excessive Drug Prices. 

The original policy would have saved almost $13 billion in drug costs over 10 years. 

Almost immediately, the policy hit a wall of resistance from the industry and industry-funded patient groups. After a series of delays, court challenges, and threats that included withholding new drugs from Canadian patients, the industry appeared to have won the fight.  

To appreciate the full extent of industry resistance to anything that would reduce their profits, I encourage you to read the above Breach article in full.

And so I end as I began: our government, while happy to engage in political theatre, refuses to stand up to its real master, the corporate sector. And all of us, both literally and figuratively, are the poorer for that sad fact.