canadian pharmaceutical market facts

The 7 Myths and Facts about Canadian Pharmaceutical Industry

If you regularly read news about the pharmaceutical industry, you may have come across some statements and myths that require additional interpretation or debunking.

Canadian drugs and pharmacies are popular not only in their native country but also abroad, so the remoteness from the country gives rise to a lot of misconceptions.

Myth – Selling Drugs Online is Prohibited

This statement applies to unauthorized suppliers. If an online pharmacy has necessary permissions, it can sell drugs online and even abroad (but if the recipient country prohibits delivery from abroad, then this can be considered prohibited practice for this particular country). However, there are many honest online pharmacies that sell quality medicines online.

Myth – All Drugs Are Produced in Canada

There are many pharmaceutical companies in Canada (both headquarters and local branches of foreign companies such as the American pharmaceutical giant Pfizer).

Fact – Drugs in Canada are Cheaper

Canadian prices for pharmaceuticals are below the international median. This led to the fact that a lot of Americans went abroad to buy medicine at brick-and-mortar Canadian pharmacies. Now many people have chosen an easier way and shop online. For the past 15 years, the US government has been lobbying for higher medicine prices in Canada, but experts say it will not lead to lower prices in the US. However, it can put more money in the pockets of profitable pharmaceutical companies.

cheaper canadian gemerics

Myth – Pharma Companies Exaggerate Production Costs to Justify High Pricing

In fact, the costs of developing and manufacturing pharmaceuticals are very high. The company needs to pay developers, introduce new technologies, etc., billions of dollars annually go for it. Of course, generic manufacturers bear less extensive expenses, which allows for setting lower prices, but these costs are still quite high.

Fact – Generic Market Volume is Extremely Huge

The Canadian pharmaceutical market would grow to around $ 25 billion by 2021, according to research and consulting company GlobalData. The company also says that this market keeps both feet on the ground in Canada – a clinical trial leader in the world.

Fact – Generics Are Not as Popular as They Seem

According to the Canadian Generic Pharmaceutical Association (CGPA), generic drugs account for only 20 percent of the prescription drug market. However, this depends on the specific type of medicine, for example, in the field of erectile dysfunction treatment, generics are now more popular than the market average, due to the large number of generic drugs and their good recognition. In addition, the revenue is not equal to the number of sales, there are a lot of prescriptions, but the market share is not so large due to the cheapness of generics.

An informative op-ed: How to Find a Reliable Canadian Pharmacy?

Fact – Lipid-Lowering Drugs are the Most Popular on the Market

As of 2012, HMG-CoA reductase inhibitors were the first to be sold on the Canadian pharmaceutical market (Canadian Government data). They are intended for the prevention and treatment of diseases of the cardiovascular system associated with increased levels of cholesterol and lipids in the blood.