The 5% · Canada · Brand drugs

Why Canada brand drugs are cheaper

It’s cheaper because Canada sets one price for the drug. Every hospital and pharmacy pays that (or a cap under it). In the US, each insurer and PBM bargains a rebate off a high list, and the sticker stays high.

PMPRB ceiling + provincial bulk buys

How it works

PMPRB sets a ceiling on patented drugs. Provinces then bulk-buy (pCPA). Hospitals are global-budgeted, so they cannot turn the vial into a 340B-to-commercial spread. Outpatient drugs are often a separate plan — the gap in Canadian coverage — and still cheaper than US list.

Why it holds

A ceiling plus a bulk buyer. RAND: US brands 3.24× Canada — Canada is about 31¢, the closest peer on brands, and still a third of US. Highest 5% concentration in Wammes (60%) and still cheaper: more of the pile on the sick, at Canadian prices.

The invoices

SKUUnited StatesCanada
Brand originators on the US dollarsourced$1.0031¢
All drugs on the US dollarsourced$1.0044¢
Specialty year at the brand indexmodeled$150,000~$46,000

See RAND drugs. 30-day list prices: CMS 2023, Inflation Reduction Act round 1.

Twenty brands — US sticker vs Canada

Ranked by the US number. 30-day list is CMS 2023 (Inflation Reduction Act round 1). Infusion doses are our hospital commercial bill. Canada column is that US sticker × this country’s RAND brand index. Gross list, not rebates. Even after a US rebate haircut, RAND says brands stay more than 3×.

DrugUnited StatesCanadaOn the US $
Keytruda (pembrolizumab)hospital dosemodeled$16,800$5,18531¢
Opdivo (nivolumab)hospital dosemodeled$15,000$4,63031¢
Alteplase (tPA) stroke dosehospital kitmodeled$15,000$4,63031¢
Imbruvica (ibrutinib)30-day listsourced$14,934$4,60931¢
Stelara (ustekinumab)30-day listsourced$13,836$4,27031¢
Herceptin-class (trastuzumab)hospital dosemodeled$9,200$2,84031¢
Neulasta-class (pegfilgrastim)hospital dosemodeled$8,900$2,74731¢
Avastin-class (bevacizumab)hospital dosemodeled$8,100$2,50031¢
Enbrel (etanercept)30-day listsourced$7,106$2,19331¢
Rituximab biosimilarhospital dosemodeled$6,800$2,09931¢
Remdesivir coursehospital coursemodeled$4,200$1,29631¢
Humira-class (adalimumab) clinicclinic syringemodeled$2,400$74131¢
Ozempic (semaglutide)30-day listmodeled$969$29931¢
Entresto (sacubitril/valsartan)30-day listsourced$628$19431¢
Jardiance (empagliflozin)30-day listsourced$573$17731¢
Farxiga (dapagliflozin)30-day listsourced$556$17231¢
Januvia (sitagliptin)30-day listsourced$527$16331¢
Eliquis (apixaban)30-day listsourced$521$16131¢
Xarelto (rivaroxaban)30-day listsourced$517$16031¢
NovoLog / Fiasp (insulin)30-day listsourced$495$15331¢

Also: Why Canada hospital prices · Who bargains with whom · Bargaining chips · The rulebook · Problems / solutions · National debt · Drug voices · Back to The 5%