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Note that there is a substantial variation in coverage among comparator countries; this reflects the difficulties in matching foreign and Canadian drugs, especially in the smaller foreign markets. The table contains two sets of results. Only maximum foreign prices are, on average, greater than Canadian prices. It divides the drugs according to the extent that the median foreign price differs from the Canadian price.

Hence, the first row of Table 3. In contrast, there were only 36 instances The number of drugs and associated Canadian generic sales covered by each ratio are also provided. Results for all other therapeutic classes indicate that foreign prices are below, and frequently substantially below, Canadian prices. The two leading therapeutic classes by sales, Nervous System and Cardiovascular System, are especially noteworthy.

The previous section compared Canadian prices and foreign prices at market exchange rates. This section provides similar comparisons using purchasing power parities PPPs to convert foreign prices into their Canadian-dollar equivalents. Here again, results obtained using the mean foreign, weighted mean foreign and median foreign price as comparators indicate that, with the exception of only two therapeutic classes, foreign prices are substantially less than corresponding Canadian prices at the level of individual therapeutic classes.

This is again certainly the case for the two largest classes by generic sales, Nervous System and Cardiovascular System. The implications of the international price comparisons presented in Sections 3 and 4 of this study are clear: mean or median foreign prices are on average only about two-thirds as high as corresponding Canadian prices. Bilateral comparisons lead to the same conclusion: of the 11 foreign markets considered in this analysis, there is no instance where foreign prices are higher, on average, than Canadian prices.

Analysis at the level of individual drugs and therapeutic classes indicates that foreign-to-Canadian price differentials are broadly based, with foreign mean or median prices substantially less than Canadian prices for the majority of drugs and nearly all therapeutic classes. This appendix provides separate international price comparison statistics for non-patented and patented drugs. It is important to understand that the results presented in these tables still encompass only generic products.

Hence, for example, the results presented in Table B. Results obtained for non-patented and patented drugs both indicate that foreign prices of generic drug products are substantially less than corresponding Canadian prices. Do not drive, use machinery, or do anything that needs alertness until you can do it safely.

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