The structure of Canadian dental insurance favors surgical care over prevention; accordingly, CHX is focused on user-pay and has years of evidence that high risk patients are willing to pay for Prevora regardless of dental insurance coverage. Health Canada has designated Prevora a medically-necessary drug and, hence, CHX intends to pursue its inclusion in drug benefit plans in Canada.
In other markets such as the UK and US, cost containment pressures are acute. For example, American insurers have published several studies showing that improved oral health reduces hospitalization rates and the use of the Emergency Room, and in turn, reduced health insurance premiums.
Accordingly, we believe Prevora’s ability to improve oral health cost-effectively will be a favorable feature to third-party payers in other markets.