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Why does such a large price difference exist between drugs from Canada and drugs from the United States?

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Why does such a large price difference exist between drugs from Canada and drugs from the United States?

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Drug prices in Canada are negotiated by the Patent Medicine Price Review Board (PMPRB) which is an element of Health Canada. Lower drug acquisition costs are rewarded with the granting of extended patent lives. The PMPRB sets and restricts price increases based on an index system of other countries and rates of inflation. The Provincial Governments in turn put pricing pressure on the pharmaceutical companies by giving preferential formulary coverage to more affordable medications. Direct to consumer advertising is not permitted in Canada and thus reduces the cost of marketing drugs in Canada. Finally, the difference in the exchange rate between the two currencies helps to provide additional margin when goods are charged in American dollars. (back to top) Attention: The Canadian Pharmacy requires that all new orders must have the original Prescription mailed in before the order can be processed. All refills can be faxed, e-mailed, or Phoned in.

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