2021 CPI-Based Price-Adjustment Factors for Patented Drug Products

The following table provides the CPI-Based Price-Adjustment factors for 2021. These factors were based on the actual rate of CPI inflation of 1.6% in 2017, 2.3% in 2018 and 2.0% in 2019.

CPI-Based Price-Adjustment factors for 2021

Benchmark Year	2018	2019	2020
Price-Adjustment Factor	1.059	1.043	1.020

Based on these factors, one can derive: (1) a maximum allowable cumulative price increase of 5.9% between 2018 and 2021 for patented medicines with Canadian sales in 2018; (2) a maximum allowable cumulative price increase of 4.3% between 2019 and 2021 for patented medicines with Canadian sales in 2019; and (3) a maximum allowable cumulative price increase of 2.0% between 2020 and 2021 for patented medicines with Canadian sales in 2020.

The year-over-year price increase cap for the 12-month period ending December 2021 is 3.0% (=1.5 x Actual Inflation in 2019).