IMC Congratulates C.D. Howe Institute on Timely Report Supporting Practical Pharmacare Solutions

Report is an Evidence-Based Contribution to One of Canada's Most Important and Complex Health Policy Challenges

Ottawa, Sept. 19, 2025 - Innovative Medicines Canada (IMC) congratulates the C.D. Howe Institute on the publication of its timely and insightful report, Access and Affordability: Building Fiscally Responsible Pharmacare Systems. The report offers a well-reasoned, evidence-based contribution to one of Canada's most important and complex health policy challenges.

The report is based on findings from a C.D. Howe Institute multi-stakeholder workshop held in August 2025, which brought together policymakers, health experts, and industry leaders to examine practical, fiscally responsible approaches to pharmacare. It emphasizes solutions that prioritize improving access for the uninsured and underinsured, without disrupting the coverage relied on by 27 million Canadians with private drug plans.

"This report underscores a growing consensus that true sustainability in pharmacare requires safeguarding what already works while expanding access to medicines for those who are currently left behind. It offers a clear and practical roadmap for policymakers committed to placing patients, rather than politics, at the heart of reform," said Dr. Bettina Hamelin, President and CEO, Innovative Medicines Canada.

Among the report's key findings:

• There is near-universal agreement among experts that Canada should fill existing gaps in drug coverage, focusing on provincial programs rather than replace the current mixed public-private system.
• With health budgets under fiscal pressure, provinces have limited capacity for large-scale new programs. Targeted reforms, such as a Quebec-style mixed model or enhanced catastrophic coverage, are more sustainable in the long term.
• Private drug plans offer broader access and faster listing timelines for new medicines than public plans, making them a vital part of Canada's access landscape.
• The federal pharmacare framework remains underfunded and unclear, creating unpredictability for global pharmaceutical companies considering whether to launch new medicines in Canada.

As stated in the report:

"[Workshop] participants emphasized that Canada's 'unacceptable time to market' for new therapies undermines the country's position as an attractive pharmaceutical market, potentially limiting patient access to cutting-edge treatments."

IMC supports the report's call for evidence-based, collaborative reform of Canada's drug approval process, and agrees with its conclusion that incremental, pragmatic change, not sweeping structural overhaul, is the most realistic and effective path forward.

IMC recommends the federal government rethink its current single-payer approach and work with provinces and industry to develop a more fiscally responsible, fill-in-the-gaps model that leverages the strengths of Canada's dual system of private and public coverage and focuses on improving access across provincial drug programs.

About Innovative Medicines Canada

Innovative Medicines Canada (IMC) is the national association representing Canada's innovative pharmaceutical industry. The association advocates for policies that enable the discovery, development, and delivery of innovative medicines and vaccines to improve the lives of all Canadians. It also champions its members' commitment to being trusted partners in the Canadian healthcare system. IMC represents 47 member companies that invest $3.2 billion in R&D annually, fueling Canada's knowledge-based economy and contributing $18.4 billion per year to the Canadian economy. Guided by the Code of Ethical Practices, all members work with governments, private payers, healthcare professionals, and stakeholders in a highly ethical manner.

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• Pharmacare