Why Are Prescription Medicines Cheaper in Canada?

Many people rely on prescription drugs to live, but the cost can be overwhelming. This has many people turning to cheaper drugs in Canada. Canadian drugs are cheaper for several reasons.

Exchange Rate

• When the US dollar is stonger then the Canadian dollar it takes less US dollars to buy something from Canada. This effectively makes every product and services bought in Canada cheaper than if it were bought in the US when the US dollar is stonger.

Cost Control

• The Canadian government had established the Patented Medicine Prices Review Board (PMPRB,) which overseas prescription drug prices and sets limits. Each province is also allowed to implement additional cost control measures specific to that region.

Advertising

• Millions of dollars are spent advertising prescription drugs in the US, which adds bulk to the cost. Such advertising is not allowed in Canada.

Unfamiliarity

• As with any other type of product, many US consumers are drawn to 'name brands' that they trust more. This is especially true in the case of prescription drugs. Since advertising of prescription drugs is not allowed in Canada, many people may be less familiar with the name brand and more willing to purchase generic, forcing the name brand to price itself competitively.

Generics

• Many generics in the US are almost as cheap as they are in Canada, but companies wanting to make these drugs must wait until the patent expires on the original name brand drug.