2020 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2020. These factors were based on the actual rate of CPI inflation of 1.4% in 2016, 1.6% in 2017 and 2.3% in 2018.

CPI-Based Price-Adjustment factors for 2020
Benchmark Year	2017	2018	2019
Price-Adjustment Factor	1.054	1.039	1.023

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase of 5.4% between 2017 and 2020 for patented medicines with Canadian sales in 2017; (2) a maximum allowable cumulative price increase of 3.9% between 2018 and 2020 for patented medicines with Canadian sales in 2018; and (3) a maximum allowable cumulative price increase of 2.3% between 2019 and 2020 for patented medicines with Canadian sales in 2019.

The year-over-year price increase cap for the 12-month period ending December 2020 is 3.5% (=1.5 x Actual Inflation in 2018).