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

A renewed three-year pricing initiative for generic drugs came into effect on October 1, 2023.

The agreement between the pan-Canadian Pharmaceutical Alliance (pCPA) and the Canadian Generic Pharmaceutical Association (CGPA) builds upon the successes achieved to date with the pan-Canadian Generic Tiered Pricing Framework (TPF) and the pan-Canadian molecules.

According to pCPA, previous joint efforts between pCPA and CGPA have resulted in savings of over $4 billion to participating drug plans over the past ten years, which will only continue to grow over the course of this new pan-Canadian agreement.