2016 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2016. These factors were based on the actual rate of CPI inflation of 1.5% in 2012, 0.9% in 2013, and 2.0% in 2014.

CPI-Based Price-Adjustment factors for 2016
Benchmark Year 2013 2014 2015
Price-Adjustment Factor 1.044 1.029 1.020

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2013 and 2016 of 4.4% for patented drug products with Canadian sales in 2013; (2) a maximum allowable cumulative price increase between 2014 and 2016 of 2.9% for patented drug products with Canadian sales in 2014; and (3) a maximum allowable cumulative price increase between 2015 and 2016 of 2.0% for patented drug products with Canadian sales in 2015.

The year-over-year price increase cap for the 12-month period ending December 2016 is 3.0% (=1.5 x Actual Inflation in 2014).

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