Our Impact
Drug Pricing, New Generic Launches and Drug Plan Sustainability
As of 2025, the average price of a brand-name drug had climbed to $210.50, compared with just $27.05 for the generic . And the most commonly prescribed generic medicines are available at a 90% discount off the price of their brand-name versions.
It is also forecast that 180 specialty brand-name drugs, representing as much as $10 billion in annual spending, will lose patent exclusivity by 2030. When these brand-name patents expire, lower-cost High-Barrier / Complex Generics will enter the market, creating new opportunities for competition, patient access, and savings.
Impact
Where Are the Savings to Offset the Costs?
The Pathway to Savings and Sustainability—and a Vital, Robust Domestic Industry
When an employee benefit plan has a mandatory substitution clause that transitions a patient to a newly available generic treatment, it can have a significant impact on the sustainability of the drug plan.
A newly launched High-Barrier / Complex Generic can typically deliver savings of up to 75% compared with the cost of the specialty brand-name drug. With 180 brand-name drugs expected to lose their patent exclusivity that is an opportunity to save billions of dollars.
While generics fill more than 80% of all prescriptions in Canada, only 72.3% of prescriptions covered by private-sector drug plans are filled using generic medicines. If private-sector drug plans increased the use of generics by as little as five percentage points, the cumulative savings could reach as much as $1.74 billion annually — while also supporting a strong and resilient domestic generic pharmaceutical sector.
Source: IQVIA research and calculations conducted by CGPA