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. 2019 Aug 1;8:100457. doi: 10.1016/j.ssmph.2019.100457

The impact of pharmaceutical innovation on the burden of disease in Canada, 2000–2016

Frank R Lichtenberg 1
PMCID: PMC6698939  PMID: 31440578

Abstract

We perform an econometric assessment of the role that pharmaceutical innovation—the introduction and use of new drugs—has played in reducing the burden of disease in Canada, by investigating whether diseases for which more new drugs were launched had larger subsequent reductions in disease burden. Since utilization of a drug reaches a peak about 12–14 years after it was launched, we allow for considerable lags in the relationship between new drug launches and the burden of disease.

We analyze the impact of new drug launches on a comprehensive measure of disease burden—the age-standardized disability-adjusted life-years lost (DALY) rate—and on its two components: the age-standardized years of life lost (YLL) and years lost to disability (YLD) rates. We also analyze the impact of new drug launches on the number of hospital discharges and on the average length of hospital stays.

The number of DALYs lost is significantly inversely related to the number of drugs that had ever been launched 9–20 years earlier, and the number of YLLs is significantly inversely related to the number of drugs that had ever been launched 11–20 years earlier. The launch of a drug has the largest (most negative) impact on the number of DALYs and YLLs 15 years after it was launched.

The estimates indicate that if no drugs had been launched during 1986–2001, the age-standardized DALY rate would not have declined between 2000 and 2016; it might even have increased. Almost all (93%) of the reduction in DALYs was due to a reduction in YLL. The estimates imply that new drug launches during 1986–2001 reduced DALYs in 2016 by 21%, reduced YLLs in 2016 by 28%, and reduced YLDs in 2016 by 3%.

We estimate that drugs launched during 1986–2001 reduced the number of DALYs lost in 2016 by 2.31 million. Expenditure in 2016 on drugs launched during 1986–2001 per DALY gained in 2016 from those drugs was 2842 USD. Interventions that avert one DALY for less than average per capita income for a given country or region are generally considered to be very cost–effective; Canada's per capita GDP was 42,158 USD in 2016, so our estimates indicate that the new drugs launched during 1986–2001 were very cost–effective, overall.

Moreover, 2842 USD may be an overestimate of the true net cost in 2016 per DALY of drugs launched during 1986–2001. A previous study based on U.S. data showed that about 25% of the cost of new drugs is offset by reduced expenditure on old drugs. Also, our estimates indicate that, if no drugs had been launched during 1986–2001, the average length of 2016 hospital stays would have been about 16% higher. The reduction in hospital expenditure due to shorter average length of stay may have been larger than the expenditure on the drugs responsible for shorter hospital stays.

Highlights

  • We assess the role that the introduction and use of new drugs has played in reducing the burden of disease in Canada.

  • New drug launches during 1986-2001 reduced the age-standardized years of life lost (YLL) rate in 2016 by 28%.

  • Drugs launched during 1986-2001 are estimated to have reduced the number of DALYs lost in 2016 by 2.31 million.

  • Expenditure in 2016 on drugs launched during 1986-2001 per DALY gained in 2016 from those drugs was 2842 USD.

  • If no drugs had been launched during 1986-2001, average length of 2016 hospital stays would have been about 16% higher.

1. Introduction

The health status of Canadians has improved during the 21st century. Life expectancy at birth increased from 79.24 years in 2000 to 82.14 years in 2015. Also, the age-standardized rate of potential years of life lost before age 751 per 100,000 population declined from 4214 during 1999–2003 to 3601 during 2009–2013—a 15% decline (Statistics Canada (2018a)).

Some researchers have argued that biomedical innovation has been the principal cause of recent improvements in health. Fuchs (2010) said that “since World War II … biomedical innovations (new drugs, devices, and procedures) have been the primary source of increases in longevity,” although he did not provide evidence to support this claim. Cutler, Deaton, and Lleras-Muney (2006) performed a survey of a large and diverse literature on the determinants of mortality, and “tentatively identif[ied] the application of scientific advance and technical progress (some of which is induced by income and facilitated by education) as the ultimate determinant of health.” They concluded that “knowledge, science, and technology are the keys to any coherent explanation” of mortality. Other research has shown that most technological progress is “embodied”: to benefit from technological progress, people must use new products and services.2

Most scholars agree with Jones’ (1998, pp. 89–90) statement that “technological progress is driven by research and development (R&D) in the advanced world.” In 1997, the medical substances and devices sector was the most R&D-intensive3 major industrial sector in the U.S.: almost twice as R&D-intensive as the next-highest sector (information and electronics), and three times as R&D-intensive as the average for all major sectors. (National Science Foundation (2017)). According to Dorsey et al. (2010), in 2008, 88% of privately-funded U.S. biomedical research expenditure was funded by pharmaceutical and biotechnology firms; the remaining 11% was funded by medical device firms.

The purpose of this study is to assess econometrically the role that pharmaceutical innovation—the introduction and use of new drugs—has played in reducing the burden of disease in Canada. During the period 1980–2016, drugs with 1404 new ATC codes were launched in Canada: about 39 new ATC codes per year, on average.4 For reasons discussed below, there is likely to be a substantial lag between the launch of a new drug and its maximum impact on the burden of disease, so we will allow for considerable lags in the relationship between new drug launches and the burden of disease.

The analysis will be performed using a difference-in-differences (or two-way fixed effects) research design: we will investigate whether diseases for which more new drugs were launched had larger subsequent reductions in disease burden. This design controls for the effects of general economic and societal factors (e.g. income, education, and behavioural risk factors5), to the extent that those effects are similar across diseases, e.g. smoking increases mortality from respiratory and cardiovascular disease as well as lung cancer, and education reduces mortality from all diseases.

The number of new drug launches varied considerably across diseases.6 Fig. 1 shows the number of chemical substances used to treat 5 diseases that had ever been launched in Canada during the period 1980–2016. These five diseases were selected because an identical number of—six— chemical substances had been launched for each disease by the year 1980. During the next 36 years, 14 new drugs for treating ovary cancer were launched; between 5 and 7 new drugs for treating gonorrhea, bladder cancer, and bipolar disorder were launched; only one new drug for treating gout was launched.

Fig. 1.

Fig. 1

Number of (WHO ATC5) chemical substances ever launched, 5 diseases, Canada, 1980–2016.

Source: Author's calculations based on data contained in Health Canada Drug Product Database and Thériaque database.

The primary measure of disease burden we will analyze is the number of disability-adjusted life-years (DALYs) lost, as defined and measured by the World Health Organization (2018a). The DALY is a summary measure that combines time lost through premature death and time lived in states of less than optimal health, loosely referred to as “disability”. The DALY is a generalization of the well-known potential Years of Life Lost measure (YLLs) to include lost good health. One DALY can be thought of as one lost year of ‘healthy’ life, and the measured disease burden is the gap between a population's health status and that of a normative reference population. DALYs for a specific cause are calculated as the sum of the YLLs from that cause and the years of healthy life lost due to disability (YLDs) for people living in states of less than good health resulting from the specific cause. The YLLs for a cause are essentially calculated as the number of cause-specific deaths multiplied by a loss function specifying the years lost for deaths as a function of the age at which death occurs.7

Table 1 shows data on the number of DALYs lost (due to all causes) and population, by age group, in Canada in 2000 and 2016. Almost 9 million DALYs were lost in 2016. As shown in row 8, the crude DALY rate (DALYs lost per 100 population) declined by just 2% between 2000 and 2016. However, the DALY rate generally increases sharply with age (e.g., in 2016, the rate among people age 70 and over was about 3 times as high as the rate among people age 50–59), and the Canadian population is aging: the fraction of the population that was age 60 and over increased from 17% in 2000 to 23% in 2016. The age-standardized DALY rate declined by 14% between 2000 and 2016, and the rates among people age 60 and over declined by 20–22%. We will analyze the impact of new drug launches on the age-standardized DALY rate and on its two components: the age-standardized YLL and YLD rates. We will also analyze the impact of new drug launches on the number of hospital discharges and on the average length of hospital stays.

Table 1.

DALYs lost and population by age group, Canada, 2000 and 2016.

row
2000
2016

age group (years) DALYs lost (000s) Population (000s) DALYs lost per 100 population DALYs lost (000s) Population (000s) DALYs lost per 100 population % decline in DALYs lost per 100 population, 2000–2016
1 0–4 227 1793 12.7 213 1929 11.1 13%
2 5–14 194 4096 4.7 161 3867 4.2 12%
3 15–29 744 6248 11.9 798 7038 11.3 5%
4 30–49 1678 9867 17.0 1512 9713 15.6 8%
5 50–59 1079 3609 29.9 1451 5428 26.7 11%
6 60–69 1214 2404 50.5 1688 4285 39.4 22%
7 70+ 2574 2718 94.7 3071 4031 76.2 20%
8 Total 7711 30735 25.1 8896 36291 24.5 2%





% of total

% of total


9 0–4 3% 6% 2% 5%
10 5–14 3% 13% 2% 11%
11 15–29 10% 20% 9% 19%
12 30–49 22% 32% 17% 27%
13 50–59 14% 12% 16% 15%
14 60–69 16% 8% 19% 12%
15 70+ 33% 9% 35% 11%
16 Total 100% 100% 100% 100%
17 Age-standardized rate1 25.1 21.5 14%

1. Age-standardized rate based on population age distribution in 2000.

Source: World Health Organization, Disease burden and mortality estimates, http://www.who.int/healthinfo/global_burden_disease/estimates/en/index1.html

In the next section, we will describe the econometric model that we will use to assess the role that pharmaceutical innovation has played in reducing the burden of disease in Canada during the period 2000–2016. The data sources used to estimate this model are discussed on Section III. Empirical results are presented in Section IV. Some implications of the estimates are discussed in Section V. Section VI provides a summary.

2. Methods

To assess the impact that pharmaceutical innovation had on the burden of disease, we will estimate models based on the following 2-way fixed effects equation8:

ln(Ydt) = βk ln(CUM_DRUGd,t-k) + αd + δt + εdt (1)

where Ydt is one of the following variables:

  • DALYdt = the age-standardized rate of DALYs lost due to disease d in year t (t = 2000, 2016)

  • YLLdt = the age-standardized rate of years of life lost due to disease d in year t

  • YLDdt = the age-standardized rate of years of healthy life lost due to disability due to disease d in year t

and.

  • CUM_DRUGd,t-k = ∑m INDmd LAUNCHEDm,t-k = the number of chemical substances to treat disease d that had been launched in Canada by the end of year t-k (k = 0, 1, 2, …,20)

  • INDmd = 1 if chemical substance m is used to treat (indicated for) disease d 9

  • INDmd = 0 if chemical substance m is not used to treat (indicated for) disease d

  • LAUNCHEDm,t-k = 1 if chemical substance m had been launched in Canada by the end of year t-k

  •  = 0 if chemical substance m had not been launched in Canada by the end of year t-k

  • αd = a fixed effect for disease d

  • δt = a fixed effect for year t

Eq. (1) may be considered a health production function (Koç (2004)), and the number of chemical substances ever launched may be considered a measure of the stock of pharmaceutical “ideas.” Jones (2002) argued that “long-run growth is driven by the discovery of new ideas throughout the world.“10 The log-log specification of eq. (1) incorporates the assumption of diminishing marginal productivity of chemical substance launches: each additional chemical substance launch for a medical condition results in a diminishing absolute reduction in disease burden. If the cost of chemical substance launches for different diseases were equal, it would be socially optimal to equalize the absolute reductions in disease burden across diseases. A small percentage reduction in the burden of a high-burden disease would be as valuable as a large percentage reduction in the burden of a low-burden disease.

Estimates based on eq. (1) will provide evidence about the impact of the launch of drugs for a disease on the burden of that disease, but they will not capture possible spillover effects of the drugs on the burden of other diseases. These spillovers may be either positive or negative. For example, the launch of cardiovascular drugs could reduce mortality from cardiovascular disease, but increase mortality from the “competing risk” of cancer. On the other hand, the launch of drugs for mental disorders could reduce mortality from other medical conditions. Prince et al. (2007) argued that “mental disorders increase risk for communicable and non-communicable diseases, and contribute to unintentional and intentional injury. Conversely, many health conditions increase the risk for mental disorder, and comorbidity complicates help-seeking, diagnosis, and treatment, and influences prognosis.”

Due to data limitations, ln(CUM_DRUGd,t-k) is the only disease-specific, time-varying regressor in eq. (1). If the data were available, we would like to include other regressors in eq. (1), including (1) disease incidence, and (2) the number of non-pharmaceutical medical innovations (e.g. medical device innovations) that had been launched in Canada. However, there is good reason to believe that failure to control for those variables is unlikely to result in overestimation of the magnitude of βk; exclusion of those variables may even result in underestimation of the magnitude of βk. Higher disease incidence is likely to result in both higher disease burden and a larger number of chemical substance launches:

Image 2

Previous studies have shown that both innovation (the number of drugs developed) and diffusion (the number of drugs launched in a country) depend on market size. Acemoglu & Linn, n.d. found “economically significant and relatively robust effects of market size on innovation.” Danzon, Wang, and Wang (2005) found that “countries with lower expected prices or smaller expected market size experience longer delays in new drug access, controlling for per capita income and other country and firm characteristics” (emphasis added).

Although incidence data are not available for most diseases, annual incidence data for the period 1992–2010 are available for 31 cancer sites (breast, lung, etc.). As expected, there is a significant positive correlation across cancer sites between ln(CASESst) (where CASESst = the number of patients diagnosed with cancer at cancer site s in year t) and ln(CUM_DRUGst) (where CUM_DRUGst = the number of chemical substances to treat cancer at site s that had ever been launched by the end of year t). But estimates of the equation ln(CUM_DRUGst) = π ln(CASESst) + αs + δst + εst indicate that the growth rate of CUM_DRUG is uncorrelated across cancer sites with the growth rate of incidence. This suggests that estimates of βk in eq. (1) are unlikely to be biased by the omission of incidence in that equation.

Failure to control for non-pharmaceutical medical innovation (e.g. innovation in diagnostic imaging, surgical procedures, and medical devices) is also unlikely to bias estimates of the effect of pharmaceutical innovation on the burden of disease, for two reasons. First, as noted earlier, 88% of privately-funded U.S. funding for biomedical research came from pharmaceutical and biotechnology firms (Dorsey et al. (2010)).11 Second, previous research based on U.S. data (Lichtenberg (2014a; 2014b)) indicated that non-pharmaceutical medical innovation is not positively correlated across diseases with pharmaceutical innovation.

The dependent variable of eq. (1) is the log of the level of disease burden in year t. We will use data for two years: 2000 and 2016. Substituting those two values of t into eq. (1) yields:

ln(Yd,2000) = βk ln(CUM_DRUGd,2000-k) + αd + δ2000 + εd,2000 (2)
ln(Yd,2016) = βk ln(CUM_DRUGd,2016-k) + αd + δ2016 + εd,2016 (3)

Subtracting eq. (2) from eq. (3) yields:

Δln(Yd) = βk Δln(CUM_DRUG_kd) + δ’ + εd (4)

where

  • Δln(Yd) = ln(Yd,2016/Yd,2000)

  • Δln(CUM_DRUG_kd) = ln(CUM_DRUGd,2016-k/CUM_DRUGd,2000-k)

  • δ’ = (δ2016 - δ2000)

  • εd’ = (εd,2016 - εd,2000)

Eq. (4) is a simple regression of the 2000–2016 growth in the burden of disease d on the growth in the number of drugs that were used to treat disease d that had ever been launched k years earlier.12 To address the issue of heteroskedasticity,13 eq. (4) will be estimated by weighted least squares, weighting by (Yd,2000 + Yd,2016)/2.

The mean (across all medical conditions) 2000–2016 log change in disease burden from drugs launched k years earlier is Δk = βk * mean (Δln(CUM_DRUG_kd)). The (absolute) reduction in 2016 disease burden from drugs launched between 2000 – k and 2016 – k is (∑d Yd,2016) * (1 - (1/exp(Δk))).

We will estimate 63 (= 3 * 21) versions of eq. (4): one for each of the three measures of disease burden (DALY, YLL, and YLD) for 21 different lag values (k = 0, 1, …, 20). There is likely to be a substantial lag between the launch of a new drug and its maximum impact on the burden of disease. Utilization of recently-launched drugs tends to be much lower than utilization of drugs launched many years earlier. Evidence about the shape of the drug-age (number of years since launch) drug-utilization profile can be obtained by estimating the following equation:

ln(N_SUmn) = ρm + πn + εmn (5)

where

  • N_SUmn = the number of standard units of molecule m sold in Canada n years after it was first launched (n = 0, 1, …, 20)

  • ρm = a fixed effect for molecule m

  • πn = a fixed effect for age n

The expression exp(πn - π14) is a “relative utilization index”: it is the mean ratio of the quantity of a drug sold n years after it was launched to the quantity of the same drug sold 14 years after it was launched. We estimated eq. (5), using annual data for the period 2007–2017 on 721 molecules. Estimates of the “relative utilization index” are shown in Fig. 2. These estimates indicate that utilization of a drug reaches a peak about 12–14 years after it was launched. It is used about twice as much then as it was 4 years after launch14

Fig. 2.

Fig. 2

Drug age-utilization profile.

Source: Author's calculations based on data contained in Health Canada Drug Product Database and IQVIA MIDAS database.

Due to gradual diffusion of new drugs, the maximum impact of a drug on disease burden is likely to occur many years after it was launched, but the peak effect could occur either more than or less than 12–14 years after launch. The lag might be longer because some drugs for chronic diseases (e.g. statins) may have to be consumed for several years to achieve full effectiveness. But the lag might be shorter because the impact of a drug on disease burden is likely to depend on its quality (or effectiveness) as well as on its quantity (utilization), and drugs launched more recently are likely to be of higher quality than earlier-vintage drugs. 15,16

As mentioned earlier, in addition to analyzing the impact of new drug launches on DALYs, we will analyze their impact on the number of hospital discharges and on the average length of hospital stays, by estimating the following equations:

Δln(DISCHARGESd) = βk Δln(CUM_DRUG_kd) + δ’+ εd (6)
Δln(ALOSd) = βk Δln(CUM_DRUG_kd) + δ’+ εd (7)

Where.

  • Δln(DISCHARGESd) = ln(DISHARGESd,2016/DISCHARGESd,2000)

  • Δln(ALOSd) = ln(ALOSd,2016/ALOSd,2000)

  • DISCHARGESdt = the number of hospital discharges for disease d in year t (t = 2000, 2016)

  • ALOSdt = average length (number of days) of hospital stays for disease d in year t

Eqs. (6), (7) will be estimated by weighted least squares, weighting by (DISCHARGESd,2000 + DISCHARGESd,2016)/2.

3. Data sources

Disease burden data. Age-standardized rates of DALY, YLL, and YLD, by disease and year, were constructed using data obtained from the World Health Organization's Disease Burden Database (World Health Organization (2018b)).17 The disease classification used in the Disease Burden Database is described in Annex Table A of World Health Organization (2018c). Age-standardized rates (per 100,000 population) of Disability-Adjusted Life-Years lost (DALYs), Years of Life Lost (YLLs), and Years of Healthy Life Lost due to Disability (YLDs), by cause, in 2000 and 2016 are shown in Appendix Table 1.

Drug launch data. Health Canada's Drug Products Database (Health Canada (2018)) was used to determine the years in which (WHO ATC 5th-level) chemical substances first received market authorization in Canada.

Drug indications data. Indications (coded by ICD-10) of chemical substances were obtained from Theriaque, a database produced by the French Centre National Hospitalier d'Information sur le Médicament (2018).18 The number of (WHO ATC5) chemical substances ever launched, by cause, during 1980–2016 are shown in Appendix Table 2.

Table 2.

Estimates of βk parameters of eq. (4).

A. DALYs (disability-adjusted life-years)
row lag Estimate Std. Err. t Value p-value N mean (regressor) βk * mean (regressor)
1 0 −0.287 0.118 −2.44 0.016 133 0.234 −0.067
2 1 −0.007 0.112 −0.06 0.950 131 0.255 −0.002
3 2 −0.071 0.116 −0.61 0.542 130 0.270 −0.019
4 3 −0.160 0.105 −1.52 0.131 130 0.295 −0.047
5 4 −0.255 0.096 −2.66 0.009 129 0.331 −0.084
6 5 −0.176 0.081 −2.19 0.031 128 0.361 −0.064
7 6 −0.094 0.073 −1.28 0.203 128 0.396 −0.037
8 7 −0.128 0.074 −1.74 0.085 127 0.422 −0.054
9 8 −0.137 0.070 −1.95 0.053 125 0.442 −0.061
10 9 −0.257 0.073 −3.51 0.001 124 0.473 −0.122
11 10 −0.246 0.078 −3.16 0.002 123 0.482 −0.118
12 11 −0.251 0.066 −3.82 0.000 123 0.516 −0.129
13 12 −0.247 0.066 −3.74 0.000 122 0.529 −0.131
14 13 −0.307 0.063 −4.88 <.0001 122 0.536 −0.164
15 14 −0.331 0.060 −5.48 <.0001 121 0.551 −0.182
16 15 −0.414 0.072 −5.77 <.0001 119 0.557 −0.231
17 16 −0.334 0.063 −5.27 <.0001 116 0.605 −0.202
18 17 −0.323 0.056 −5.81 <.0001 116 0.637 −0.206
19 18 −0.315 0.055 −5.76 <.0001 116 0.633 −0.200
20 19 −0.311 0.053 −5.83 <.0001 112 0.640 −0.199
21
20
−0.281
0.053
−5.28
<.0001
112
0.649
−0.182
B. YLLs (years of life lost)
row
lag
Estimate
Std. Err.
t Value
p-value
N
mean(regressor)
βk * mean(regressor)
22 0 −0.070 0.140 −0.50 0.619 133 0.285 −0.020
23 1 0.231 0.123 1.88 0.063 131 0.293 0.068
24 2 0.111 0.135 0.83 0.410 130 0.300 0.033
25 3 −0.031 0.125 −0.25 0.804 130 0.331 −0.010
26 4 −0.183 0.114 −1.61 0.111 129 0.371 −0.068
27 5 −0.085 0.092 −0.93 0.357 128 0.409 −0.035
28 6 −0.015 0.088 −0.17 0.864 128 0.446 −0.007
29 7 −0.053 0.090 −0.59 0.555 127 0.477 −0.025
30 8 −0.099 0.087 −1.13 0.262 125 0.495 −0.049
31 9 −0.200 0.092 −2.17 0.033 124 0.533 −0.107
32 10 −0.184 0.096 −1.92 0.058 123 0.536 −0.099
33 11 −0.272 0.082 −3.32 0.001 123 0.568 −0.155
34 12 −0.303 0.085 −3.56 0.001 122 0.576 −0.174
35 13 −0.376 0.082 −4.59 <.0001 122 0.600 −0.225
36 14 −0.419 0.077 −5.41 <.0001 121 0.621 −0.260
37 15 −0.513 0.103 −4.98 <.0001 119 0.635 −0.326
38 16 −0.238 0.087 −2.72 0.008 116 0.722 −0.172
39 17 −0.200 0.078 −2.56 0.012 116 0.788 −0.157
40 18 −0.212 0.077 −2.75 0.007 116 0.781 −0.165
41 19 −0.178 0.074 −2.42 0.018 112 0.806 −0.144
42
20
−0.153
0.070
−2.18
0.032
112
0.807
−0.124
C. YLDs (years lost due to disability)
row
lag
Estimate
Std. Err.
t Value
p-value
N
mean(regressor)
βk * mean(regressor)
43 0 −0.116 0.071 −1.63 0.106 133 0.173 −0.020
44 1 0.014 0.059 0.23 0.815 131 0.210 0.003
45 2 −0.008 0.057 −0.13 0.894 130 0.234 −0.002
46 3 −0.027 0.051 −0.52 0.604 130 0.253 −0.007
47 4 −0.052 0.048 −1.09 0.279 129 0.284 −0.015
48 5 −0.053 0.044 −1.21 0.228 128 0.305 −0.016
49 6 0.008 0.035 0.22 0.827 128 0.337 0.003
50 7 −0.001 0.035 −0.02 0.987 127 0.358 0.000
51 8 0.011 0.026 0.43 0.669 125 0.379 0.004
52 9 −0.064 0.027 −2.37 0.019 124 0.401 −0.026
53 10 −0.058 0.029 −2.00 0.049 123 0.417 −0.024
54 11 −0.045 0.024 −1.92 0.058 123 0.453 −0.020
55 12 −0.042 0.022 −1.90 0.061 122 0.472 −0.020
56 13 −0.045 0.022 −2.01 0.047 122 0.458 −0.021
57 14 −0.042 0.022 −1.90 0.060 121 0.467 −0.020
58 15 −0.068 0.025 −2.73 0.007 119 0.465 −0.032
59 16 −0.068 0.026 −2.65 0.009 116 0.468 −0.032
60 17 −0.072 0.025 −2.85 0.005 116 0.458 −0.033
61 18 −0.063 0.024 −2.61 0.010 116 0.457 −0.029
62 19 −0.066 0.026 −2.56 0.012 112 0.444 −0.029
63 20 −0.056 0.025 −2.21 0.030 112 0.463 −0.026

Drug utilization and expenditure data. Data on the quantity (number of standard units) and value (in USD) of prescription drugs sold in Canada, by chemical substance and year (2007–2017) were obtained from the IQVIA MIDAS database.

Cancer incidence data. Data on the number of new cases of primary cancer, by cancer site and year, were obtained from Statistics Canada (2018c).

Hospitalization data. Data on the number of hospital discharges and average length of stay, by diagnosis, in 2000 and 2016, were obtained from the OECD Health Statistics database (OECD (2018a)). The disease classification scheme is provided in OECD (2018b). The number of hospital discharges and average length of stay (in days), by cause, in 2000 and 2016 are shown in Appendix Table 3.

Table 3.

Estimates of βk parameters of eqs. (6), (7).

A. Discharges
row lag Estimate Std. Err. t Value p-value N mean (regressor) βk * mean (regressor)
1 0 0.236 0.260 0.91 0.369 61 0.199 0.047
2 1 0.266 0.252 1.06 0.294 61 0.211 0.056
3 2 0.256 0.246 1.04 0.301 61 0.223 0.057
4 3 0.164 0.212 0.77 0.443 61 0.254 0.042
5 4 0.149 0.192 0.78 0.439 61 0.292 0.044
6 5 0.101 0.175 0.58 0.566 61 0.316 0.032
7 6 0.092 0.180 0.51 0.612 61 0.327 0.030
8 7 0.109 0.183 0.60 0.552 61 0.355 0.039
9 8 0.141 0.167 0.84 0.403 61 0.380 0.054
10 9 0.116 0.159 0.73 0.470 61 0.422 0.049
11 10 0.117 0.166 0.71 0.483 61 0.424 0.050
12 11 0.092 0.152 0.61 0.547 61 0.466 0.043
13 12 0.086 0.149 0.58 0.564 61 0.491 0.042
14 13 0.096 0.146 0.65 0.516 61 0.512 0.049
15 14 0.115 0.140 0.83 0.411 61 0.539 0.062
16 15 0.167 0.157 1.06 0.294 60 0.555 0.093
17 16 0.151 0.159 0.96 0.343 60 0.565 0.086
18 17 0.095 0.140 0.68 0.499 60 0.602 0.057
19 18 0.053 0.135 0.39 0.698 58 0.608 0.032
20 19 0.075 0.142 0.52 0.602 58 0.606 0.045
21
20
0.080
0.138
0.58
0.567
58
0.619
0.049



B. ALOS
row
lag
Estimate
Std. Err.
t Value
p-value
N
mean(regressor)
βk * mean(regressor)
22 0 −0.431 0.157 −2.74 0.008 61 0.199 −0.086
23 1 −0.417 0.153 −2.73 0.008 61 0.211 −0.088
24 2 −0.452 0.147 −3.08 0.003 61 0.223 −0.101
25 3 −0.418 0.124 −3.36 0.001 61 0.254 −0.106
26 4 −0.383 0.112 −3.41 0.001 61 0.292 −0.112
27 5 −0.341 0.102 −3.33 0.002 61 0.316 −0.108
28 6 −0.316 0.108 −2.94 0.005 61 0.327 −0.103
29 7 −0.317 0.109 −2.89 0.005 61 0.355 −0.112
30 8 −0.302 0.100 −3.02 0.004 61 0.380 −0.115
31 9 −0.267 0.096 −2.79 0.007 61 0.422 −0.113
32 10 −0.268 0.100 −2.67 0.010 61 0.424 −0.114
33 11 −0.242 0.092 −2.63 0.011 61 0.466 −0.113
34 12 −0.237 0.090 −2.63 0.011 61 0.491 −0.116
35 13 −0.265 0.087 −3.03 0.004 61 0.512 −0.136
36 14 −0.271 0.082 −3.29 0.002 61 0.539 −0.146
37 15 −0.311 0.093 −3.35 0.001 60 0.555 −0.173
38 16 −0.315 0.093 −3.38 0.001 60 0.565 −0.178
39 17 −0.278 0.082 −3.39 0.001 60 0.602 −0.167
40 18 −0.282 0.078 −3.62 0.001 58 0.608 −0.171
41 19 −0.275 0.083 −3.30 0.002 58 0.606 −0.166
42 20 −0.251 0.082 −3.06 0.003 58 0.619 −0.155

4. Results

Estimates of βk parameters of eq. (4) are shown in Table 2. In Panel A of Table 2, the dependent variable is Δln(DALYd) = ln(DALYd,2016/DALYd,2000). The estimate in each row of the table is from a separate model. Rows 1–21 show estimates for assumed values of 0, 1, 2, …, 20 years of the lag (k) from drug launch to disease burden. The point estimates and 95% confidence intervals are also plotted (on an inverted scale) in Panel A of Fig. 3, where solid markers denote significant (p-value < .05) estimates and hollow markers represent insignificant estimates. For k ≤ 8, only 3 of the 9 estimates are statistically significant. This is not surprising since, as discussed earlier, utilization of recently-launched drugs tends to be quite low, and there may also be a lag from drug utilization to disease burden reduction. However, for k ≥ 9, all 12 βk estimates are negative and statistically significant: the number of DALYs lost is significantly inversely related to the number of drugs that had ever been launched 9–20 years earlier. The magnitude of the estimates tends to increase as k increases, until k = 15, when it starts to decline. The launch of a drug had the largest (most negative) impact on the number of DALYs lost 15 years after it was launched.

Fig. 3.

Fig. 3

Estimates of βk parameters of eq. (4).

Panel A of Fig. 4 shows a comparison of the relative utilization and DALY βk estimate profiles. Utilization of a drug tends to rise until 12 years after launch, remains stable for 3 years, and then starts to decline. The βk estimates exhibit some volatility in years 0–6, but then generally increase in magnitude until year 15, and begin to decline the year after utilization begins to decline. The correlation between these two profiles is highly statistically significant (correlation = −0.58; p-value = .006).

Fig. 4.

Fig. 4

Comparison of relative utilization and βk estimate profiles.

Fig. 5 is a bubble plot depicting the relationship across diseases between the 1985–2001 percentage increase in the number of drugs ever launched, and the 2000–2016 percentage change in the age-standardized DALY rate. It is clear from the figure that ischemic heart disease is a highly influential observation. Although the fact that an observation is influential does not necessarily mean that it should be excluded, we estimated the model when that observation was excluded. Exclusion of that observation reduced the point estimate of β15 by 36% (from −0.414 to −0.265), but the estimate remained highly significant (t-value = 4.93; p-value < .0001).19

Fig. 5.

Fig. 5

Relationship across diseases between % increase in number of drugs ever launched, 1985–2001, and % change in age-standardized DALY rate, 2000–2016.

Bubble area is proportional to (DALYc,2000 + DALYc,2016)/2.

Another apparently influential observation is diabetes. This observation is weakening the relationship between drug launches and DALY reduction: despite a large percentage increase in the number of diabetes drugs, the burden of diabetes did not decline by an unusually large amount. This may be due to a significant increase in the prevalence of diabetes.20 Appendix Fig. 1 shows that the prevalence of diabetes in Canada increased significantly between 2000/2001 and 2008. When we exclude both diabetes and ischemic heart disease from the sample, the point estimate of β15 (−0.385) is very close to the estimate reported in row 16 of Table 2, and is highly significant (t-value = 5.69; p-value < .0001).

We also estimated an alternative functional form (semi-logarithmic as opposed to log-log) of the relationship between drug launches and subsequent DALY reduction. These estimates are shown in Appendix Table 4. Twenty of the 21 coefficients are negative and significant. There is little evidence of an inverted U-shaped profile, and the maximum magnitude of the effect (βk * mean (regressor)) in the semi-logarithmic model is only 38% as large as the maximum magnitude of the effect in the log-log model. But the fit of the semi-logarithmic model is inferior to the fit of the log-log model. When we include both ln (CUM_DRUGd,2001/CUM_DRUGd,1985) and (CUM_DRUGd,2001 - CUM_DRUGd,1985) in the model, as suggested by Davidson and MacKinnon (1981), the coefficient on the former regressor is significant, but the coefficient on the latter regressor is not. This indicates that the log-log functional form is more appropriate than the semi-logarithmic functional form.21

Now we will briefly summarize estimates of models of the two components of DALY, YLL and YLD.22 In Panel B of Table 2, the dependent variable is Δln(YLLd) = ln(YLLd,2016/YLLd,2000). Rows 22–42 show estimates for assumed values of 0, 1, 2, …, 20 years of the lag (k) from drug launch to disease burden. The point estimates and 95% confidence intervals are also plotted (on an inverted scale) in Panel B of Fig. 3. For k ≤ 10, only 1 of the 11 estimates is statistically significant. However, for k ≥ 11, all 10 βk estimates are negative and statistically significant: the number of YLLs is significantly inversely related to the number of drugs that had ever been launched 11–20 years earlier. Once again, the magnitude of the estimates tends to increase as k increases, until k = 15, when it starts to decline. The launch of a drug had the largest (most negative) impact on the number of YLLs lost 15 years after it was launched. Panel B of Fig. 4 shows a comparison of the relative utilization and YLL βk estimate profiles. Like the DALY βk estimates, the YLL βk estimates exhibit some volatility in years 0–6, but then generally increase in magnitude until year 15, and begin to decline the year after utilization begins to decline. The correlation between these two profiles is again highly statistically significant (correlation = −0.78; p-value < .001).

In Panel C of Table 2, the dependent variable is Δln(YLDd) = ln(YLDd,2016/YLDd,2000). The point estimates and 95% confidence intervals are also plotted (on an inverted scale) in Panel C of Fig. 3. For k ≤ 8, none of the 9 estimates are statistically significant. For 9 ≤ k ≤ 14, 3 out of 6 βk estimates are negative and significant. For 15 ≤ k ≤ 20, 6 out of 6 βk estimates are negative and significant. This indicates that the number of years lost due to disability was reduced by drugs that had been launched up until 15–20 years earlier.

The estimates in Table 2 imply that most of the DALY reduction from new drug launches was due to a reduction in YLL. The estimates of β15 in rows 16, 37, and 58 imply that new drug launches during 1986–2001 reduced DALYs in 2016 by 21% (= 1 – exp (-0.231)), reduced YLLs in 2016 by 28%, and reduced YLDs in 2016 by 3%.23 There will be additional discussion of the magnitudes of these effects in the next section.

The last estimates we will present are estimates of βk from the hospital discharges and average length of stay equations, eqs. (6), (7). Panel A of Table 3 shows estimates of βk from the hospital discharges equation, eq. (6). None of the estimates are statistically significant; we see no evidence that new drug launches reduced the number of people discharged from (or admitted to) hospitals. However, since there is strong evidence that new drug launches reduced mortality, they may have increased the number of people “at risk” of being hospitalized, so new drug launches may have reduced the number of hospital discharges per person at risk of being hospitalized.

Panel B of Table 3 shows estimates of βk from the average length of hospital stay equation, eq. (7). All 21 estimates are negative and highly significant (p-value ≤ .011), indicating that medical conditions for which there were more new drug launches had smaller increases in average length of stay (ALOS).24 In contrast to the DALY and YLL estimates, the magnitudes of the ALOS estimates are larger for more recent drug launches. Perhaps uptake of new drugs is more rapid among hospitalized patients than it is among other patients. However, the overall impact of new drug launches (βk * mean(Δln(CUM_DRUG_k))) is highest for k = 16: new drugs launched during 1984–2000 had the largest (most negative) effect on ALOS in 2016. The estimate in row 38 of Table 3 indicates that those drug launches reduced ALOS in 2016 by 16% (= 1 – exp(-0.178)).

5. Discussion

The estimates of the DALY model shown in Panel A of Table 2 and Fig. 3, Fig. 4, in conjunction with other data, may be used to calculate the reduction in DALYs lost in 2016 attributable to previous drug launches and the average cost per DALY gained. DALYs are most significantly inversely related to the number of drugs that had ever been launched 15 years earlier. The estimate of β15 in row 16 of Table 2 indicates that drugs launched during 1986–2001 reduced the mean 2000–2016 log change in DALYs lost by −0.231. This implies that, in the absence of those drug launches, DALYs lost in 2016 would have been 26.0% (= 1 - exp(-0.231)) higher. As shown in Table 1, the total number of DALYs lost in 2016 was 8.896 million, so we estimate that drugs launched during 1986–2001 reduced the number of DALYs lost in 2016 by 2.31 million. If those drugs had not been launched, the total number of DALYs lost in 2016 would have been 11.21 million. Similar calculations based on the YLL and YLD estimates imply that almost all (93%) of the reduction in DALYs was due to a reduction in YLL.

As noted earlier (see Table 1), the age-standardized DALY rate declined by 14.4% between 2000 and 2016. The estimate of the model in row 16 of Table 2 indicates that, if no drugs had been launched during 1986–2001, the age-standardized DALY rate would not have declined; it might even have increased.25 Fig. 6 compares actual % declines in age-standardized DALY, YLL, and YLD rates, 2000–2016 to estimated % declines attributable to drugs launched during 1986–2001.

Fig. 6.

Fig. 6

Actual vs. estimated % declines in age-standardized DALY, YLL, and YLD rates, 2000–2016.

According to unpublished IQVIA data, expenditure in Canada in 2016 on drugs launched during 1986–2001 was 6.57 billion USD.26 This expenditure estimate, along with our estimate of the reduction in DALYs lost, implies that pharmaceutical expenditure per DALY gained in 2016 from drugs launched during 1986–2001 was 2842 USD (= 6.57 billion USD/2.31 million DALYs).27 As noted by Bertram et al. (2016), authors writing on behalf of the WHO's Choosing Interventions that are Cost–Effective project (WHO-CHOICE) suggested in 2005 that “interventions that avert one DALY for less than average per capita income for a given country or region are considered very cost–effective; interventions that cost less than three times average per capita income per DALY averted are still considered cost–effective.” Canada's per capita GDP was 42,158 USD in 2016, so these estimates indicate that the new drugs launched during 1986–2001 were very cost–effective, overall.

Several considerations suggest that 2842 USD may be an overestimate of the true net cost in 2016 per DALY of drugs launched during 1986–2001. First, that estimate is based on drug cost measured at invoice price levels; rebates and discounts are not reflected.28 Second, a previous study based on U.S. data (Lichtenberg (2014c)) showed that about 25% of the cost of new drugs is offset by reduced expenditure on old drugs.29 Third, our estimates indicated that, if no drugs had been launched during 1986–2001, the average length of 2016 hospital stays would have been about 16% higher. This suggests that hospital expenditure might have been 16% higher. According to the Canadian Institute for Health Information (2017), hospital expenditure in 2016 was 51.30 billion USD (= 66.63 billion CAD at a 0.77 USD/CAD exchange rate), so hospital expenditure might have been 8.21 billion USD (= 16% * 51.30 billion USD) higher. The reduction in hospital expenditure due to shorter average length of stay may have been larger than the expenditure on the drugs responsible for shorter hospital stays.

6. Summary

In this study, we performed an econometric assessment of the role that pharmaceutical innovation—the introduction and use of new drugs—has played in reducing the burden of disease in Canada, by investigating whether diseases for which more new drugs were launched had larger subsequent reductions in disease burden. Since utilization of a drug reaches a peak about 12–14 years after it was launched, we allowed for considerable lags in the relationship between new drug launches and the burden of disease.

We analyzed the impact of new drug launches on a comprehensive measure of disease burden—the age-standardized disability-adjusted life-years lost (DALY) rate—and on its two components: the age-standardized years of life lost (YLL) and years lost to disability (YLD) rates. We also analyzed the impact of new drug launches on the number of hospital discharges and on the average length of hospital stays.

We found that the number of DALYs lost is significantly inversely related to the number of drugs that had ever been launched 9–20 years earlier, and that the number of YLLs is significantly inversely related to the number of drugs that had ever been launched 11–20 years earlier. The launch of a drug had the largest (most negative) impact on the number of DALYs and YLLs 15 years after it was launched.

The estimates indicated that if no drugs had been launched during 1986–2001, the age-standardized DALY rate would not have declined between 2000 and 2016; it might even have increased. Almost all (93%) of the reduction in DALYs was due to a reduction in YLL. The estimates implied that new drug launches during 1986–2001 reduced DALYs in 2016 by 21%, reduced YLLs in 2016 by 28%, and reduced YLDs in 2016 by 3%.

We estimated that drugs launched during 1986–2001 reduced the number of DALYs lost in 2016 by 2.31 million. Expenditure in 2016 on drugs launched during 1986–2001 per DALY gained in 2016 from those drugs was 2842 USD. Interventions that avert one DALY for less than average per capita income for a given country or region are generally considered to be very cost–effective; Canada's per capita GDP was 42,158 USD in 2016, so our estimates indicate that the new drugs launched during 1986–2001 were very cost–effective, overall.

Due to data limitations, we were unable to control for non-pharmaceutical medical innovations. Evidence from previous studies suggests that this is unlikely to cause significant bias in our estimates, because (1) the vast majority (88%) of private U.S. biomedical research funding came from pharmaceutical and biotechnology firms, and (2) non-pharmaceutical medical innovation does not appear to be positively correlated across diseases with pharmaceutical innovation. But, arguendo, suppose that drugs launched during 1986–2001 reduced the number of DALYs lost in 2016 by half as much as we estimated: by 1.155 million, instead of 2.31 million, and that the other half was due to new medical devices. Then 2016 expenditure on those drugs per 2016 DALY reduction would be twice as high as we estimated: $5684, instead of $2842. Even this higher figure would indicate that the new drugs launched during 1986–2001 were very cost–effective in 2016.

Moreover, 2842 USD may be an overestimate of the true net cost in 2016 per DALY of drugs launched during 1986–2001. A previous study based on U.S. data showed that about 25% of the cost of new drugs is offset by reduced expenditure on old drugs. Also, our estimates indicated that, if no drugs had been launched during 1986–2001, the average length of 2016 hospital stays would have been about 16% higher. The reduction in hospital expenditure due to shorter average length of stay may have been larger than the expenditure on the drugs responsible for shorter hospital stays.

Funding

This article is based on a research report commissioned and funded by Merck Canada Inc.

1

Potential years of life lost (PYLL) is an estimate of the average years a person would have lived if he or she had not died prematurely.

2

Solow (1960) argued that “many if not most innovations need to be embodied in new kinds of durable equipment before they can be made effective. Improvements in technology affect output only to the extent that they are carried into practice either by net capital formation or by the replacement of old-fashioned equipment by the latest models …” Hercowitz (1998, p. 223) concluded that “‘embodiment’ is the main transmission mechanism of technological progress to economic growth.”

3

R&D intensity is the ratio of R&D to sales.

4

A medicinal substance can be given more than one ATC code if it is available in two or more strengths or routes of administration with clearly different therapeutic uses (WHO Collaborating Centre for Drug Statistics Methodology (2015).

5

The trend in one behavioural risk factor—obesity—may have increased the burden of disease. Between 2003 and 2014, the fraction of Canadian men whose reported height and weight classified them as obese increased from 16.0% to 21.8%; the fraction of Canadian women whose reported height and weight classified them as obese increased from 14.5% to 18.7% (Statistics Canada (2018b)).

6

Many drugs are used to treat multiple diseases: 50% of drugs are used to treat 2 or more diseases, 25% of drugs are used to treat 3 or more diseases, and 14% of drugs are used to treat 4 or more diseases.

7

To estimate YLDs for a particular cause in a particular time period, the number of incident cases in that period is multiplied by the average duration of the disease and a weight factor that reflects the severity of the disease on a scale from 0 (perfect health) to 1 (dead). The ‘valuation’ of time lived in non-fatal health states formalizes and quantifies the loss of health for different states of health as disability weights. In the standard DALYs reported by the original Global Burden of Disease study and in subsequent WHO updates, calculations of YLDs and YLLs used an additional 3% time discounting and non-uniform age weights that give less weight to years lost at young and older ages (Murray (1996)). Using discounting and age weights, a death in infancy corresponds to 33 DALYs, and deaths at ages 5–20 years to around 36 DALYs.

8

In addition to estimating models based on the log-log specification (eq. (1)), I will estimate models based on the log-linear specification ln(Yct) = βk CUM_DRUGc,t-k + αc + δt + εct.

10

The discovery of new ideas could increase economic output for two different reasons. First, output could simply be positively related to the quantity (and variety) of ideas ever discovered. Second, output could be positively related to the (mean or maximum) quality of ideas ever discovered, and new ideas may be better (of higher quality), on average, than old ideas.

11

Much of the rest came from the federal government (i.e. the NIH), and new drugs often build on upstream government research (Sampat and Lichtenberg (2011)). The National Cancer Institute (2017) says that it “has played a vital role in cancer drug discovery and development, and, today, that role continues.”

12

The parameter δ′ in eq. (4) is an estimate of the mean log change in disease burden in the absence of any drug launches between 2000 – k and 2016 -k.

13

Percentage deviations of observations with low disease burden means exhibit much greater variance and volatility than percentage changes of observations with high average disease burden means.

14

The estimate of a 12–14 year lag from drug launch to peak drug utilization in Canada is 4 years longer than the average 8–10 year lag in 22 countries (Australia, Austria, Belgium, Brazil, Canada, Switzerland, Chile, Colombia, Germany, Ecuador, Spain, Finland, France, United Kingdom, Ireland, Italy, Japan, Mexico, Portugal, Singapore, Sweden, and the U.S.) estimated in Lichtenberg (2019). In that study, data on drug launch dates were obtained from a different data source: the IQVIA New Product Focus database.

15

Grossman and Helpman (1993) argued that “innovative goods are better than older products simply because they provide more ‘product services’ in relation to their cost of production.” Bresnahan and Gordon (1996) stated simply that “new goods are at the heart of economic progress,” and Bils (2004) said that “much of economic growth occurs through growth in quality as new models of consumer goods replace older, sometimes inferior, models.” As noted by Jovanovic and Yatsenko (2012), in “the Spence–Dixit–Stiglitz tradition … new goods [are] of higher quality than old goods.”

16

The impact on mortality may depend on the interaction (quantity * quality) of the two variables. The mortality impact will increase with respect to drug age (time since launch) if the rate of increase of quantity with respect to age is greater than the rate of decline of quality with respect to age; otherwise the mortality impact will decline.

17

These data may also be obtained from the Global Health Data Exchange (2019).

18

Theriaque provides data only on labeled indications; it does not provide data on off-label indications.

19

If all 6 cardiovascular diseases are removed from the sample, the point estimate of β15 is −0.209 and is still highly significant (t-value = 4.02; p-value = .0001).

20

This may be related to the rise in obesity described earlier.

21

Also, estimates of the semi-logarithmic functional form are more likely to be influenced by the disease classification/aggregation scheme than estimates of the log-log functional form.

22

As shown in Appendix Table 1, the magnitudes of YLL and YLD were almost identical in 2016. The age-standardized YLL rate declined by 25% between 2000 and 2016, but the age-standardized YLD rate increased by 1% between 2000 and 2016.

23

The YLD data we analyze are probably subject to much greater measurement error than the YLL data. In general, disability is more difficult to measure than death. Intensive searching of the Health Canada and Statistics Canada websites indicated that hardly any Canada-specific data on disability, by disease and year, exist. Therefore, the WHO YLD data may be largely imputed from other, non-Canadian sources. Better-quality disease-specific disability data are available for the U.S. and European countries. Two studies (e.g. Lichtenberg (2014c)) based on data from those regions have shown that new drugs have reduced disability.

24

As shown in Appendix Table 3, average length of stay for all medical conditions increased from 7.2 days in 2000 to 8.1 days in 2016.

25

The intercept (δ′) of that model is positive but not statistically significant (estimate = 0.046; t-value = 1.03; p-value = .305). The increase in obesity and diabetes prevalence might have caused the age-standardized DALY rate to increase.

26

This is about 1/3 (32%) of IQVIA's estimate of total pharmaceutical expenditure in 2016 (20.51 billion USD). IQVIA's estimate of total pharmaceutical expenditure is 17% lower than the estimate of 2016 expenditure on prescribed drugs reported in the Canadian Institute for Health Information's National Health Expenditure Database: 24.76 billion USD (= 32.15 billion CAD at a 0.77 USD/CAD exchange rate). But IQVIA's estimate is only 6% lower than the estimate of 2016 total pharmaceutical sales reported in the OECD Health Statistics Database: 21.82 billion USD (= 28.33 billion CAD at a 0.77 USD/CAD exchange rate).

27

A recently-published study (Lichtenberg (2019)) of 66 diseases in 27 countries during the period 2000–2013, which employed a 3-way fixed-effects design that controlled for the average decline in the YLL rate in each country and from each disease, yielded a virtually identical cost-effectiveness estimate.

28

In the U.S. in 2014, rebates reduced total brand name drug cost by 17.5% (Centers for Medicare & Medicaid Services (2018)).

29

That study also demonstrated that pharmaceutical innovation has reduced work-loss and school-loss days.

9

Many drugs have multiple indications: 50% of drugs have 2 or more indications (causes of disease in the WHO Global Health Estimates disease classification), and 7% of drugs have 5 or more indications.

Appendix

Appendix Table 1.

Age-standardized rates (per 100,000 population) of Disability-Adjusted Life-Years lost (DALYs), Years of Life Lost (YLLs), and Years of Healthy Life Lost due to Disability (YLDs), by cause, Canada, 2000 and 2016.

WHO Global Health Estimates cause DALY
YLL
YLD
2000 2016 2000 2016 2000 2016
0 All Causes 25,087.3 21,463.0 14,818.3 11,121.2 10,269.0 10,341.9
10 Communicable, maternal, perinatal and nutritional conditions 1,181.7 1,142.7 824.4 757.2 357.3 385.5
20 Infectious and parasitic diseases 340.8 304.5 273.1 230.4 67.7 74.1
30 Tuberculosis 11.0 5.9 9.9 5.0 1.1 0.9
40 STDs excluding HIV 14.5 16.5 1.3 2.6 13.2 13.9
50 Syphilis 2.6 4.4 0.4 2.1 2.2 2.3
60 Chlamydia 2.1 2.1 0.2 0.1 1.9 2.0
70 Gonorrhoea 1.6 1.5 0.5 0.3 1.1 1.2
80 Trichomoniasis 3.3 3.4 0.0 0.0 3.3 3.4
85 Genital herpes 2.6 2.7 0.0 0.0 2.6 2.7
90 Other STDs 2.4 2.4 0.2 0.1 2.2 2.2
100 HIV/AIDS 107.9 59.5 85.0 32.4 22.9 27.1
110 Diarrhoeal diseases 26.6 66.2 13.4 50.9 13.3 15.3
120 Childhood-cluster diseases 2.1 1.2 1.2 0.4 0.9 0.8
130 Whooping cough 1.8 1.0 0.9 0.3 0.9 0.8
140 Diphtheria 0.0 0.0 0.0 0.0 0.0 0.0
150 Measles 0.2 0.1 0.2 0.1 0.0 0.0
160 Tetanus 0.0 0.0 0.0 0.0 0.0 0.0
170 Meningitis 19.8 11.8 16.7 8.4 3.1 3.4
180 Encephalitis 25.3 25.3 21.8 21.3 3.5 3.9
185 Hepatitis 22.0 11.4 20.3 10.7 1.7 0.6
186 Acute hepatitis A 5.2 2.0 4.5 1.7 0.8 0.3
190 Acute hepatitis B 7.5 5.7 6.7 5.4 0.8 0.3
200 Acute hepatitis C 0.0 0.0 0.0 0.0 0.0 0.0
205 Acute hepatitis E 9.2 3.7 9.1 3.7 0.1 0.0
210 Parasitic and vector diseases 2.2 0.9 1.6 0.3 0.7 0.5
220 Malaria 0.0 0.0 0.0 0.0 0.0 0.0
230 African trypanosomiasis 0.0 0.0 0.0 0.0 0.0 0.0
240 Chagas disease 0.2 0.2 0.0 0.0 0.2 0.2
250 Schistosomiasis 0.0 0.0 0.0 0.0 0.0 0.0
260 Leishmaniasis 0.0 0.0 0.0 0.0 0.0 0.0
270 Lymphatic filariasis 0.0 0.0 0.0 0.0 0.0 0.0
280 Onchocerciasis 0.0 0.0 0.0 0.0 0.0 0.0
285 Cysticercosis 1.1 0.1 0.9 0.0 0.2 0.1
295 Echinococcosis 0.9 0.3 0.6 0.0 0.2 0.3
300 Dengue 0.0 0.0 0.0 0.0 0.0 0.0
310 Trachoma 0.0 0.0 0.0 0.0 0.0 0.0
315 Yellow fever 0.0 0.0 0.0 0.0 0.0 0.0
320 Rabies 0.1 0.2 0.1 0.2 0.0 0.0
330 Intestinal nematode infections 0.0 0.0 0.0 0.0 0.0 0.0
340 Ascariasis 0.0 0.0 0.0 0.0 0.0 0.0
350 Trichuriasis 0.0 0.0 0.0 0.0 0.0 0.0
360 Hookworm disease 0.0 0.0 0.0 0.0 0.0 0.0
362 Food-bourne trematodes 0.0 0.0 0.0 0.0 0.0 0.0
365 Leprosy 0.0 0.0 0.0 0.0 0.0 0.0
370 Other infectious diseases 109.3 105.9 102.0 98.3 7.4 7.6
380 Respiratory infections 376.1 348.3 245.3 218.0 130.7 130.3
390 Lower respiratory infections 248.2 220.4 243.8 216.0 4.3 4.4
400 Upper respiratory infections 102.2 103.2 0.9 1.5 101.3 101.6
410 Otitis media 25.7 24.8 0.6 0.5 25.1 24.3
420 Maternal conditions 7.6 6.5 6.0 4.8 1.5 1.6
490 Neonatal conditions 383.5 415.2 278.4 287.7 105.1 127.5
500 Preterm birth complications 226.7 242.1 156.7 150.9 70.0 91.2
510 Birth asphyxia and birth trauma 75.7 68.7 59.3 50.4 16.4 18.3
520 Neonatal sepsis and infections 28.9 28.4 13.9 14.6 15.0 13.8
530 Other neonatal conditions 52.1 76.0 48.5 71.8 3.6 4.2
540 Nutritional deficiencies 73.8 68.3 21.5 16.3 52.2 52.0
550 Protein-energy malnutrition 12.9 11.8 8.5 6.6 4.4 5.1
560 Iodine deficiency 12.3 12.4 0.0 0.0 12.3 12.3
570 Vitamin A deficiency 0.0 0.0 0.0 0.0 0.0 0.0
580 Iron-deficiency anaemia 45.5 42.7 10.1 8.4 35.5 34.3
590 Other nutritional deficiencies 3.1 1.4 2.9 1.2 0.1 0.2
600 Noncommunicable diseases 21,373.3 18,102.5 12,347.7 9,052.0 9,025.7 9,050.6
610 Malignant neoplasms 4,885.6 3,750.2 4,734.1 3,601.0 151.5 149.2
620 Mouth and oropharynx cancers 87.3 74.7 84.1 72.0 3.2 2.7
621 Lip and oral cavity 44.9 39.2 42.6 37.4 2.3 1.8
622 Nasopharynx 10.9 8.0 10.6 7.8 0.3 0.2
623 Other pharynx 31.5 27.5 30.9 26.9 0.7 0.6
630 Oesophagus cancer 122.0 102.9 120.7 101.7 1.3 1.3
640 Stomach cancer 162.5 107.3 158.3 103.5 4.3 3.8
650 Colon and rectum cancers 536.3 427.1 516.5 408.5 19.8 18.6
660 Liver cancer 100.5 127.5 99.6 126.0 1.0 1.5
661 Liver cancer secondary to hepatitis B 16.6 21.0 16.5 20.8 0.1 0.1
662 Liver cancer secondary to hepatitis C 36.6 47.6 36.5 47.4 0.1 0.2
663 Liver cancer secondary to alcohol use 30.8 38.7 30.5 38.2 0.4 0.5
664 Other liver cancer 16.5 20.3 16.0 19.6 0.4 0.7
670 Pancreas cancer 222.9 204.8 220.7 202.6 2.3 2.2
680 Trachea, bronchus, lung cancers 1,261.9 943.2 1,247.8 930.0 14.1 13.2
690 Melanoma and other skin cancers 91.6 88.6 86.8 82.5 4.8 6.0
691 Malignant skin melanoma 78.8 72.2 74.3 66.8 4.5 5.3
692 Non-melanoma skin cancer 12.8 16.4 12.5 15.7 0.3 0.7
700 Breast cancer 484.8 326.9 456.5 300.9 28.4 26.0
710 Cervix uteri cancer 41.9 34.8 39.7 32.9 2.2 1.9
720 Corpus uteri cancer 60.7 60.4 56.8 55.8 3.8 4.6
730 Ovary cancer 115.5 91.4 112.3 88.6 3.2 2.8
740 Prostate cancer 244.3 159.9 220.6 138.8 23.7 21.1
742 Testicular cancer 7.5 7.8 6.6 6.7 0.9 1.1
745 Kidney cancer 117.3 93.3 113.8 89.8 3.5 3.4
750 Bladder cancer 107.7 89.3 101.5 83.3 6.2 6.0
751 Brain and nervous system cancers 183.6 166.4 181.2 163.6 2.4 2.8
752 Gallbladder and biliary tract cancer 38.9 24.2 37.9 23.5 1.0 0.7
753 Larynx cancer 44.7 22.2 43.2 21.0 1.5 1.2
754 Thyroid cancer 12.2 12.4 10.1 10.0 2.1 2.3
755 Mesothelioma 26.6 22.3 26.1 21.8 0.5 0.5
760 Lymphomas, multiple myeloma 336.5 229.0 326.0 216.8 10.5 12.2
761 Hodgkin lymphoma 18.2 12.5 17.0 11.1 1.2 1.4
762 Non-Hodgkin lymphoma 233.5 145.6 226.8 137.5 6.7 8.1
763 Multiple myeloma 84.9 70.9 82.2 68.1 2.7 2.8
770 Leukaemia 192.9 153.2 186.3 145.9 6.6 7.3
780 Other malignant neoplasms 285.4 180.6 281.1 174.8 4.3 5.8
790 Other neoplasms 107.5 75.8 98.7 64.3 8.8 11.5
800 Diabetes mellitus 851.9 699.9 414.5 282.8 437.5 417.1
810 Endocrine, blood, immune disorders 230.9 232.1 162.2 159.5 68.7 72.6
811 Thalassaemias 10.0 10.3 1.5 1.1 8.5 9.2
812 Sickle cell disorders and trait 4.0 4.2 1.6 1.7 2.4 2.5
813 Other haemoglobinopathies and haemolytic anaemias 19.2 13.4 17.1 11.6 2.1 1.8
814 Other endocrine, blood and immune disorders 197.7 204.2 142.0 145.1 55.8 59.1
820 Mental and substance use disorders 2,848.6 2,973.0 278.1 293.5 2,570.5 2,679.4
830 Depressive disorders 662.0 633.0 0.0 0.0 662.0 633.0
831 Major depressive disorder 499.3 469.0 0.0 0.0 499.3 469.0
832 Dysthymia 162.7 164.0 0.0 0.0 162.7 164.0
840 Bipolar disorder 176.4 171.3 1.3 1.1 175.1 170.3
850 Schizophrenia 226.9 225.3 8.8 4.3 218.1 220.9
860 Alcohol use disorders 280.5 272.5 94.1 77.4 186.4 195.1
870 Drug use disorders 536.6 627.1 164.8 204.7 371.7 422.4
871 Opioid use disorders 348.0 419.3 120.7 142.3 227.2 277.0
872 Cocaine use disorders 61.1 72.7 13.5 22.1 47.6 50.6
873 Amphetamine use disorders 19.4 23.6 4.7 7.8 14.6 15.8
874 Cannabis use disorders 31.0 24.2 0.0 0.0 31.0 24.2
875 Other drug use disorders 77.1 87.4 25.9 32.5 51.2 54.9
880 Anxiety disorders 482.4 513.5 0.0 0.0 482.4 513.5
890 Eating disorders 54.8 60.5 2.8 3.6 52.1 56.9
900 Autism and Asperger syndrome 138.9 140.4 0.0 0.0 138.9 140.4
910 Childhood behavioural disorders 79.9 78.9 0.0 0.0 79.9 78.9
911 Attention deficit/hyperactivity syndrome 12.3 12.2 0.0 0.0 12.3 12.2
912 Conduct disorder 67.5 66.7 0.0 0.0 67.5 66.7
920 Idiopathic intellectual disability 32.6 70.3 6.4 2.5 26.3 67.8
930 Other mental and behavioural disorders 177.7 180.3 0.0 0.0 177.7 180.3
940 Neurological conditions 1,596.6 1,761.2 706.3 874.6 890.3 886.5
950 Alzheimer disease and other dementias 501.6 708.7 371.5 559.2 130.1 149.5
960 Parkinson disease 90.9 95.8 65.8 70.0 25.2 25.8
970 Epilepsy 96.7 87.1 34.3 33.3 62.4 53.7
980 Multiple sclerosis 86.0 88.5 43.5 35.7 42.4 52.8
990 Migraine 507.9 480.4 0.0 0.0 507.9 480.4
1000 Non-migraine headache 102.2 99.5 0.0 0.0 102.2 99.5
1010 Other neurological conditions 211.2 201.2 191.1 176.4 20.1 24.8
1020 Sense organ diseases 893.3 911.0 0.6 0.6 892.7 910.5
1030 Glaucoma 8.0 8.0 0.1 0.0 8.0 8.0
1040 Cataracts 29.9 15.5 0.0 0.0 29.9 15.5
1050 Uncorrected refractive errors 161.3 164.2 0.0 0.0 161.3 164.2
1060 Macular degeneration 12.8 11.0 0.0 0.0 12.8 11.0
1070 Other vision loss 46.1 37.5 0.0 0.0 46.1 37.5
1080 Other hearing loss 530.4 569.3 0.0 0.0 530.4 569.2
1090 Other sense organ disorders 104.8 105.6 0.5 0.6 104.3 105.0
1100 Cardiovascular diseases 4,654.4 2,733.9 4,049.1 2,200.5 605.3 533.3
1110 Rheumatic heart disease 28.5 19.5 26.4 17.7 2.1 1.8
1120 Hypertensive heart disease 58.1 62.2 47.5 52.7 10.6 9.5
1130 Ischaemic heart disease 2,769.0 1,416.0 2,668.8 1,331.7 100.2 84.3
1140 Stroke 985.7 609.9 761.5 400.9 224.2 209.0
1141 Ischaemic stroke 639.4 391.5 450.1 220.2 189.3 171.3
1142 Haemorrhagic stroke 346.2 218.4 311.4 180.7 34.9 37.8
1150 Cardiomyopathy, myocarditis, endocarditis 130.7 103.3 114.8 89.5 15.9 13.8
1160 Other circulatory diseases 682.5 523.0 430.0 308.1 252.4 214.9
1170 Respiratory diseases 1,147.6 992.7 743.9 611.5 403.8 381.2
1180 Chronic obstructive pulmonary disease 664.4 540.8 583.6 455.8 80.8 85.0
1190 Asthma 337.8 296.9 27.0 15.1 310.7 281.9
1200 Other respiratory diseases 145.4 155.0 133.2 140.6 12.2 14.4
1210 Digestive diseases 637.6 592.5 553.6 504.6 84.0 88.0
1220 Peptic ulcer disease 37.5 33.5 24.5 19.0 13.0 14.5
1230 Cirrhosis of the liver 232.1 251.8 215.3 234.5 16.8 17.3
1231 Cirrhosis due to hepatitis B 30.4 34.0 29.2 32.8 1.2 1.2
1232 Cirrhosis due to hepatitis C 54.5 57.1 50.0 52.5 4.5 4.6
1233 Cirrhosis due to alcohol use 98.7 106.1 92.5 99.6 6.3 6.4
1234 Other liver cirrhosis 48.6 54.7 43.6 49.6 4.9 5.1
1240 Appendicitis 3.8 3.3 2.7 2.2 1.1 1.1
1241 Gastritis and duodenitis 19.5 20.2 3.8 3.0 15.6 17.2
1242 Paralytic ileus and intestinal obstruction 32.0 31.3 30.9 30.1 1.1 1.2
1244 Inflammatory bowel disease 27.6 18.1 18.2 8.8 9.4 9.4
1246 Gallbladder and biliary diseases 27.2 25.9 22.7 21.1 4.6 4.8
1248 Pancreatitis 29.6 25.2 25.9 21.3 3.7 3.9
1250 Other digestive diseases 228.3 183.1 209.6 164.6 18.7 18.6
1260 Genitourinary diseases 502.7 447.1 217.4 159.8 285.2 287.3
1270 Kidney diseases 284.6 218.3 179.8 113.8 104.8 104.5
1271 Acute glomerulonephritis 0.4 0.3 0.4 0.3 0.0 0.0
1272 Chronic kidney disease due to diabetes 141.1 103.6 87.1 50.7 54.0 52.9
1273 Other chronic kidney disease 143.0 114.4 92.3 62.8 50.7 51.6
1280 Benign prostatic hyperplasia 61.7 63.5 1.9 2.7 59.8 60.8
1290 Urolithiasis 5.9 6.5 1.4 1.9 4.5 4.6
1300 Other urinary diseases 40.9 47.3 33.9 40.7 6.9 6.6
1310 Infertility 9.7 9.6 0.0 0.0 9.7 9.6
1320 Gynecological diseases 100.0 101.9 0.4 0.7 99.5 101.2
1330 Skin diseases 308.4 313.7 15.6 17.1 292.8 296.6
1340 Musculoskeletal diseases 1,964.1 1,950.8 83.4 70.7 1,880.7 1,880.1
1350 Rheumatoid arthritis 105.3 116.8 16.5 11.2 88.9 105.6
1360 Osteoarthritis 245.4 251.8 6.1 4.2 239.4 247.7
1370 Gout 30.2 30.8 0.4 0.5 29.9 30.4
1380 Back and neck pain 893.5 872.5 2.2 3.3 891.3 869.2
1390 Other musculoskeletal disorders 689.7 678.9 58.3 51.7 631.3 627.2
1400 Congenital anomalies 366.4 307.3 254.6 192.5 111.8 114.7
1410 Neural tube defects 25.9 22.3 12.2 8.0 13.7 14.3
1420 Cleft lip and cleft palate 0.9 0.8 0.1 0.1 0.8 0.8
1430 Down syndrome 23.8 28.5 16.1 20.8 7.7 7.7
1440 Congenital heart anomalies 115.3 73.3 102.0 59.9 13.3 13.5
1450 Other chromosomal anomalies 45.3 47.5 32.8 35.3 12.5 12.2
1460 Other congenital anomalies 155.2 134.8 91.4 68.6 63.8 66.2
1470 Oral conditions 342.7 343.6 0.6 1.3 342.1 342.4
1480 Dental caries 27.1 26.9 0.0 0.0 27.1 26.9
1490 Periodontal disease 82.8 83.6 0.1 0.1 82.7 83.6
1500 Edentulism 175.7 175.0 0.1 0.1 175.6 174.9
1502 Other oral disorders 57.1 58.1 0.5 1.1 56.6 56.9
1505 Sudden infant death syndrome 35.0 17.6 35.0 17.6 0.0 0.0

Appendix Table 2.

Number of (WHO ATC5) chemical substances ever launched, by cause, Canada, 1980–2016.

WHO Global Health Estimates cause 1980 1986 1992 1998 2004 2010 2016
All chemical substances 828 1033 1276 1614 1825 2000 2232
30 Tuberculosis 10 10 10 15 15 15 15
50 Syphilis 4 4 4 5 5 5 5
60 Chlamydia 5 5 5 5 5 5 5
70 Gonorrhoea 6 7 10 10 10 11 11
80 Trichomoniasis 2 3 3 3 3 3 3
85 Genital herpes 0 2 2 4 4 4 4
90 Other STDs 1 2 2 2 3 4 4
100 HIV/AIDS 0 1 5 15 25 34 40
110 Diarrhoeal diseases 15 17 20 22 23 25 26
130 Whooping cough 3 4 4 5 5 5 5
140 Diphtheria 4 6 6 7 7 7 7
150 Measles 2 4 4 5 5 5 5
160 Tetanus 8 10 10 11 11 11 11
170 Meningitis 10 17 20 22 25 27 28
180 Encephalitis 0 0 0 1 1 2 2
186 Acute hepatitis A 1 1 1 3 4 4 4
190 Acute hepatitis B 1 3 5 7 10 12 12
200 Acute hepatitis C 0 2 3 3 6 6 15
220 Malaria 5 5 6 9 9 9 9
230 African trypanosomiasis 0 0 1 1 1 1 1
250 Schistosomiasis 0 0 0 1 1 1 1
260 Leishmaniasis 1 1 2 2 2 2 2
270 Lymphatic filariasis 0 1 1 1 1 1 1
280 Onchocerciasis 0 1 1 1 1 1 1
295 Echinococcosis 0 1 1 1 1 1 1
310 Trachoma 1 1 1 1 1 1 1
315 Yellow fever 1 1 1 1 1 1 1
320 Rabies 0 2 2 2 2 2 2
340 Ascariasis 2 2 3 3 3 3 3
360 Hookworm disease 1 1 2 2 2 2 2
362 Food-bourne trematodes 3 3 3 4 4 4 4
365 Leprosy 2 2 2 2 2 3 3
370 Other infectious diseases 88 109 127 158 169 177 177
390 Lower respiratory infections 37 45 56 62 70 75 75
400 Upper respiratory infections 47 53 62 68 70 72 73
410 Otitis media 18 20 25 25 26 27 27
420 Maternal conditions 21 27 34 37 38 39 40
500 Preterm birth complications 4 4 8 8 8 9 9
530 Other neonatal conditions 11 12 14 14 14 14 14
550 Protein-energy malnutrition 2 2 2 2 3 3 3
560 Iodine deficiency 4 4 4 5 5 5 5
570 Vitamin A deficiency 8 9 9 9 9 9 9
580 Iron-deficiency anaemia 5 5 6 6 7 10 10
590 Other nutritional deficiencies 39 42 45 47 48 49 49
620 Mouth and oropharynx cancers 1 3 3 4 4 4 4
630 Oesophagus cancer 1 4 4 6 6 6 6
640 Stomach cancer 2 4 5 7 8 8 9
650 Colon and rectum cancers 3 3 3 6 6 12 15
660 Liver cancer 0 1 1 2 2 3 3
670 Pancreas cancer 1 3 5 6 6 9 10
680 Trachea, bronchus, lung cancers 5 11 13 19 21 23 30
691 Malignant skin melanoma 3 4 5 5 5 5 12
692 Non-melanoma skin cancer 0 0 0 0 1 1 1
700 Breast cancer 8 14 18 28 32 35 40
710 Cervix uteri cancer 1 3 4 5 5 8 8
720 Corpus uteri cancer 0 1 1 1 1 1 1
730 Ovary cancer 6 10 13 17 17 19 20
740 Prostate cancer 2 5 8 12 13 15 19
742 Testicular cancer 3 5 7 7 7 7 7
745 Kidney cancer 1 2 4 4 4 6 7
750 Bladder cancer 6 9 11 12 12 12 12
751 Brain and nervous system cancers 11 12 12 12 13 13 14
752 Gallbladder and biliary tract cancer 0 0 0 1 1 1 1
754 Thyroid cancer 0 0 0 0 0 1 3
755 Mesothelioma 2 3 4 4 4 6 6
761 Hodgkin lymphoma 11 15 17 17 17 17 20
762 Non-Hodgkin lymphoma 16 24 28 28 29 34 42
763 Multiple myeloma 9 13 15 15 15 18 24
770 Leukaemia 16 23 28 32 35 41 52
800 Diabetes mellitus 7 8 13 24 35 45 48
811 Thalassaemias 0 0 0 0 0 1 2
812 Sickle cell disorders and trait 2 2 2 2 2 2 2
813 Other haemoglobinopathies and haemolytic anaemias 8 8 9 9 11 15 15
814 Other endocrine, blood and immune disorders 84 101 125 149 179 199 216
830 Depressive disorders 10 13 19 23 26 27 28
840 Bipolar disorder 6 7 7 11 11 12 13
850 Schizophrenia 15 16 17 22 22 25 25
860 Alcohol use disorders 11 13 14 14 14 15 15
871 Opioid use disorders 0 0 1 2 3 4 4
880 Anxiety disorders 16 19 24 26 28 30 30
890 Eating disorders 7 8 11 11 11 11 11
900 Autism and Asperger syndrome 2 2 2 2 2 2 2
911 Attention deficit/hyperactivity syndrome 1 2 2 2 3 3 3
912 Conduct disorder 0 0 0 1 1 1 1
920 Idiopathic intellectual disability 0 0 0 1 1 1 1
930 Other mental and behavioural disorders 27 30 37 49 57 60 61
950 Alzheimer disease and other dementias 0 0 0 0 1 1 1
960 Parkinson disease 7 8 11 15 17 20 21
970 Epilepsy 15 15 16 21 23 26 29
980 Multiple sclerosis 7 9 12 16 17 19 24
990 Migraine 13 13 15 18 22 22 22
1000 Non-migraine headache 8 9 10 10 11 12 12
1010 Other neurological conditions 28 31 35 45 49 53 55
1030 Glaucoma 7 10 13 18 20 20 22
1040 Cataracts 1 1 1 1 1 1 1
1050 Uncorrected refractive errors 2 2 3 3 4 5 5
1060 Macular degeneration 0 0 0 0 1 4 5
1070 Other vision loss 11 13 13 14 16 19 20
1080 Other hearing loss 1 1 1 1 1 1 1
1090 Other sense organ disorders 45 52 61 73 79 82 83
1110 Rheumatic heart disease 12 12 12 14 14 14 14
1120 Hypertensive heart disease 22 31 44 60 69 75 80
1130 Ischaemic heart disease 17 24 32 45 52 55 58
1140 Stroke 4 6 10 14 15 17 19
1150 Cardiomyopathy, myocarditis, endocarditis 18 23 26 26 26 27 27
1160 Other circulatory diseases 59 75 92 115 128 137 145
1180 Chronic obstructive pulmonary disease 33 36 47 55 60 62 69
1190 Asthma 19 21 27 33 38 39 40
1200 Other respiratory diseases 44 53 72 80 84 87 94
1220 Peptic ulcer disease 4 8 13 16 19 19 19
1230 Cirrhosis of the liver 5 6 7 8 12 14 19
1241 Gastritis and duodenitis 0 0 1 1 1 1 1
1242 Paralytic ileus and intestinal obstruction 1 2 2 2 2 2 2
1244 Inflammatory bowel disease 8 9 11 13 15 16 17
1246 Gallbladder and biliary diseases 5 5 6 8 8 8 8
1248 Pancreatitis 4 4 5 5 5 5 5
1250 Other digestive diseases 58 71 88 102 104 106 112
1270 Kidney diseases 26 34 44 54 59 63 66
1280 Benign prostatic hyperplasia 1 2 5 6 9 9 11
1290 Urolithiasis 7 7 7 7 7 7 7
1300 Other urinary diseases 40 49 60 73 78 82 86
1310 Infertility 5 5 7 10 11 11 12
1320 Gynecological diseases 22 27 29 31 36 39 43
1330 Skin diseases 94 111 132 149 171 181 191
1350 Rheumatoid arthritis 20 24 25 28 38 43 44
1360 Osteoarthritis 15 18 19 21 25 25 25
1370 Gout 6 6 6 6 6 7 7
1380 Back and neck pain 19 22 24 28 34 36 37
1390 Other musculoskeletal disorders 57 68 79 91 105 115 118
1410 Neural tube defects 1 1 1 1 1 1 1
1440 Congenital heart anomalies 0 0 0 0 1 1 2
1450 Other chromosomal anomalies 0 0 1 1 1 1 1
1460 Other congenital anomalies 7 9 11 12 12 13 15
1480 Dental caries 4 4 5 5 5 5 5
1490 Periodontal disease 9 10 13 14 14 15 15
1502 Other oral disorders 16 20 23 26 26 27 27

Appendix Table 3.

Number of hospital discharges and average length of stay (in days), by cause, Canada, 2000 and 2016.

Cause Number of hospital discharges
Average length of stay
2000 2016 2000 2016
0000 All causes 28,85,062 30,57,503 7.2 8.1
0101 Intestinal infectious diseases except diarrhoea 14,131 16,801 4.8 7.1
0103 Tuberculosis 1,015 1,039 20.2 21.8
0104 Septicaemia 9,230 26,590 11.1 12.2
0105 Human immunodeficiency virus [HIV] disease 1,652 944 13.4 16.4
0106 Other infectious and parasitic diseases 16,522 20,835 6.2 8.1
0200 Neoplasms 2,15,414 2,02,310 9.6 8.4
0201 Malignant neoplasm of colon, rectum and anus 22,081 22,347 13.7 10.3
0202 Malignant neoplasms of trachea, bronchus and lung 22,204 18,851 12.2 10.7
0203 Malignant neoplasms of skin 1,991 2,012 6.3 6.9
0204 Malignant neoplasm of breast 17,796 9,822 4.5 4.2
0205 Malignant neoplasm of uterus 5,730 7,424 6.4 4.3
0206 Malignant neoplasm of ovary 3,270 3,021 11.0 7.8
0207 Malignant neoplasm of prostate 12,485 10,491 7.1 4.7
0208 Malignant neoplasm of bladder 10,214 8,281 6.0 6.2
0209 Other malignant neoplasms 74,078 82,082 13.0 11.0
0210 Carcinoma in situ 3,561 3,555 3.7 3.2
0211 Benign neoplasm of colon, rectum and anus 2,253 3,046 7.4 5.7
0212 Leiomyoma of uterus 18,514 9,934 3.6 2.1
0213 Other benign neoplasms and neoplasms of uncertain or unknown behaviour 21,237 21,444 5.9 5.2
0300 Diseases of the blood and bloodforming organs and certain disorders involving the immune mechanism 25,688 27,984 6.4 6.6
0301 Anaemias 13,960 14,909 6.8 6.5
0302 Other diseases of the blood and bloodforming organs and certain disorders involving the immune mechanism 11,728 13,075 6.0 6.7
0400 Endocrine, nutritional and metabolic diseases 64,573 78,580 8.2 7.8
0401 Diabetes mellitus 30,021 37,127 10.0 9.9
0402 Other endocrine, nutritional and metabolic diseases 34,552 41,453 6.7 5.9
0600 Diseases of the nervous system 43,652 59,431 11.6 14.0
0602 Multiple sclerosis 1,856 1,425 15.7 16.5
0603 Epilepsy 7,889 13,077 5.7 6.5
0604 Transient cerebral ischaemic attacks and related syndromes 10,970 9,057 5.7 4.5
0605 Other diseases of the nervous system 20,145 30,396 13.6 14.4
0700 Diseases of the eye and adnexa 15,436 5,898 2.3 3.3
0701 Cataract 1,662 220 2.0 2.0
0702 Other diseases of the eye and adnexa 13,774 5,678 2.3 3.3
0800 Diseases of the ear and mastoid process 11,902 8,534 2.7 3.1
0900 Diseases of the circulatory system 4,34,532 3,80,737 8.7 8.0
0901 Hypertensive diseases 12,334 6,594 8.5 5.6
0903 Acute myocardial infarction 64,920 71,909 8.4 5.2
0905 Pulmonary heart disease & diseases of pulmonary circulation 7,725 12,254 9.2 7.5
0906 Conduction disorders and cardiac arrhythmias 54,463 53,872 5.1 5.2
0907 Heart failure 60,321 65,510 10.1 10.1
0908 Cerebrovascular diseases 52,954 53,049 16.7 13.2
0909 Atherosclerosis 7,135 6,831 11.9 10.8
0910 Varicose veins of lower extremities 2,404 1,046 5.7 11.7
0911 Other diseases of the circulatory system 49,294 55,732 9.1 8.7
1000 Diseases of the respiratory system 2,57,572 2,72,315 6.6 7.4
1001 Acute upper respiratory infections and influenza 17,875 22,704 2.7 4.6
1002 Pneumonia 78,938 67,974 7.9 7.4
1003 Other acute lower respiratory infections 20,215 17,119 3.7 3.7
1004 Chronic diseases of tonsils and adenoids 12,283 5,858 1.2 1.1
1005 Other diseases of upper respiratory tract 11,038 8,152 2.4 2.7
1006 Chronic obstructive pulmonary disease and bronchiectasis 55,757 89,897 9.2 8.1
1007 Asthma 31,010 11,443 3.5 2.9
1008 Other diseases of the respiratory system 30,456 49,168 9.9 11.4
1101 Disorders of teeth and supporting structures 6,768 5,826 2.2 1.8
1102 Other diseases of oral cavity, salivary glands and jaws 2,733 2,893 3.7 4.5
1103 Diseases of oesophagus 10,681 7,877 5.2 5.6
1104 Peptic ulcer 11,149 9,692 7.3 7.3
1105 Dyspepsia and other diseases of stomach and duodenum 13,657 7,378 4.9 6.4
1106 Diseases of appendix 29,737 38,581 3.6 2.4
1107 Inguinal hernia 20,702 10,714 2.5 3.2
1108 Other abdominal hernia 17,446 17,985 4.3 4.5
1109 Crohn's disease and ulcerative colitis 12,586 10,099 9.2 7.8
1111 Paralytic ileus and intestinal obstruction without hernia 25,374 30,123 7.5 7.0
1112 Diverticular disease of intestine 19,127 18,358 7.3 6.2
1113 Diseases of anus and rectum 8,512 9,263 4.2 4.4
1114 Other diseases of intestine 12,731 14,515 8.3 8.4
1115 Alcoholic liver disease 4,755 6,185 11.9 12.5
1116 Other diseases of liver 6,802 9,911 11.5 11.2
1117 Cholelithiasis 49,080 33,606 3.7 4.0
1118 Other diseases of gall bladder and biliary tract 10,080 13,067 5.7 6.0
1119 Diseases of pancreas 16,037 24,021 8.3 6.2
1120 Other diseases of the digestive system 18,337 25,781 7.3 6.9
1200 Diseases of the skin and subcutaneous tissue 31,043 33,613 7.9 9.3
1201 Infections of the skin and subcutaneous tissue 23,478 26,634 6.6 7.9
1202 Dermatitis, eczema and papulosquamous disorders 1,616 1,744 5.4 5.7
1203 Other diseases of the skin and subcutaneous tissue 5,949 5,235 13.7 17.2
1300 Diseases of the musculoskeletal system and connective tissue 1,30,720 1,87,483 7.0 5.7
1301 Coxarthrosis [arthrosis of hip] . 36,682 . 3.6
1302 Gonarthrosis [arthrosis of knee] . 62,850 . 3.5
1303 Internal derangement of knee 4,123 1,028 1.7 1.6
1305 Systemic connective tissue disorders 3,699 3,337 12.2 10.7
1306 Deforming dorsopathies and spondylopathies 7,873 15,625 8.8 8.4
1307 Intervertebral disc disorders 15,726 10,846 5.3 5.4
1308 Dorsalgia 7,297 7,776 6.3 7.6
1309 Soft tissue disorders 13,985 12,252 4.2 9.4
1310 Other disorders of the musculoskeletal system and connective tissue 23,489 16,805 9.0 11.7
1400 Diseases of the genitourinary system 1,77,274 1,64,458 4.3 5.2
1401 Glomerular and renal tubulo-interstitial diseases 16,731 24,209 5.2 4.9
1402 Renal failure 11,723 23,905 12.9 10.0
1403 Urolithiasis 25,438 15,087 2.7 2.4
1404 Other diseases of the urinary system 30,805 40,709 5.4 7.6
1405 Hyperplasia of prostate 15,512 13,495 3.5 2.5
1406 Other diseases of male genital organs 5,424 4,207 3.2 4.5
1407 Disorders of breast 10,073 2,459 1.5 1.7
1408 Inflammatory diseases of female pelvic organs 6,345 3,589 3.5 3.8
1409 Menstrual, menopausal and other female genital conditions 19,072 13,015 3.0 1.8

Appendix Table 4.

Estimates of βk parameters of semi-logarithmic version of eq. (4), Δln(Yd) = βk (CUM_DRUGd,2016-k - CUM_DRUGd,2000-k) + δ’+ εd

row lag Estimate Std. Err. t Value p-value N mean (regressor) βk * mean (regressor)
1 0 −0.0056 0.003 −2.04 0.044 136 8.357 −0.047
2 1 −0.0026 0.003 −0.99 0.324 136 8.682 −0.022
3 2 −0.0037 0.002 −1.48 0.142 136 9.203 −0.034
4 3 −0.0048 0.002 −2.03 0.044 136 9.811 −0.047
5 4 −0.0055 0.002 −2.62 0.010 136 11.028 −0.061
6 5 −0.0054 0.002 −2.66 0.009 136 11.464 −0.062
7 6 −0.0047 0.002 −2.32 0.022 136 11.816 −0.055
8 7 −0.0051 0.002 −2.66 0.009 136 12.535 −0.064
9 8 −0.0052 0.002 −2.79 0.006 136 12.814 −0.066
10 9 −0.0045 0.002 −2.65 0.009 136 14.021 −0.064
11 10 −0.0042 0.002 −2.46 0.016 136 14.097 −0.059
12 11 −0.0047 0.002 −2.83 0.005 136 14.691 −0.069
13 12 −0.0043 0.002 −2.60 0.011 136 14.678 −0.063
14 13 −0.0052 0.002 −3.23 0.002 136 14.769 −0.076
15 14 −0.0052 0.002 −3.35 0.001 136 14.923 −0.078
16 15 −0.0049 0.002 −3.14 0.002 136 14.972 −0.074
17 16 −0.0054 0.002 −3.29 0.001 136 14.877 −0.080
18 17 −0.0059 0.002 −3.65 0.000 136 14.770 −0.088
19 18 −0.0057 0.002 −3.39 0.001 136 14.121 −0.080
20 19 −0.0055 0.002 −3.26 0.001 136 13.946 −0.076
21 20 −0.0051 0.002 −2.87 0.005 136 13.276 −0.068

Appendix Fig. 1.

Appendix Fig. 1

Age-standardized percentage reporting a diagnosis of diabetes, by sex, population aged 12 or older, canada, 2000/2001,2003,2005,2007, and 2008.1

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