2018 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2018. These factors were based on the actual rate of CPI inflation of 2.0% in 2014, 1.1% in 2015 and 1.4% in 2016.

CPI-Based Price-Adjustment factors for 2018
Benchmark Year	2015	2016	2017
Price-Adjustment Factor	1.045	1.026	1.014

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2015 and 2018 of 4.5% for patented drug products with Canadian sales in 2015; (2) a maximum allowable cumulative price increase between 2016 and 2018 of 2.6% for patented drug products with Canadian sales in 2016; and (3) a maximum allowable cumulative price increase between 2017 and 2018 of 1.4% for patented drug products with Canadian sales in 2017.

The year-over-year price increase cap for the 12-month period ending December 2018 is 2.1% (=1.5 x Actual Inflation in 2016).