2019 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2019. These factors were based on the actual rate of CPI inflation of 1.1% in 2015, 1.4% in 2016 and 1.6% in 2017.

CPI-Based Price-Adjustment factors for 2019
Benchmark Year	2016	2017	2018
Price-Adjustment Factor	1.042	1.030	1.016

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase between 2016 and 2019 of 4.2% for patented drug products with Canadian sales in 2016; (2) a maximum allowable cumulative price increase between 2017 and 2019 of 3.0% for patented drug products with Canadian sales in 2017; and (3) a maximum allowable cumulative price increase between 2018 and 2019 of 1.6% for patented drug products with Canadian sales in 2018.

The year-over-year price increase cap for the 12-month period ending December 2019 is 2.4% (=1.5 x Actual Inflation in 2017).