In Canada, the prices of generic prescription medicines are set by provincial and territorial governments and through the pan-Canadian Pharmaceutical Alliance (pCPA) Generics Initiative, which brings together Canada’s provinces, territories, and federal government drug benefit plans.

The pCPA / CGPA 2023 Generic Pricing Initiative has been extended for another two years, supporting continued price stability and predictability for generic medicines.

The agreement builds on the long-standing collaboration between the pCPA and CGPA and contributes to a transparent pricing system that delivers substantial savings for Canadians — whether they have public coverage, private coverage, or pay out of pocket.

Previous joint pricing initiatives between pCPA and CGPA have generated billions of dollars in savings for participating public drug plans, with additional savings flowing to private drug plans and Canadians who pay for their medicines out of pocket.

The extended agreement, effective October 1, 2026, includes existing cost-saving initiatives such as the pan-Canadian Tiered Pricing Framework and pan-Canadian Select Molecule Pricing. The agreement provides greater certainty and predictability for generic manufacturers, helping support continued investment, product launches, and timely access to cost-saving medicines for Canadians.