4 reasons why Canadian drugs are so inexpensive
There is a misconception among many Americans that pharmaceutical companies are able to charge less for Canadian drugs because they sell drugs at such a high price in the USA. It is a fact that Canada drugs cost considerably less than American drugs but the reasons are different from what people think.
To give you an example, a 30 day supply of Flomax in the USA costs $110 but when you buy the same medicine from Canada, a 30 day supply only costs $38. This is about 65% less, $72 in monetary terms. It is no wonder that more Americans are now looking to buy Canadian drugs because of the huge savings that they can make. If you compare some patented prescription drugs available in the USA and compare their costs with the same Canada drugs you will find similar differences.
The major reason why Canadian drugs are cheaper is because of the Patented Medicine Prices Review Board in Canada. This board puts an upper ceiling on the cost that pharmaceutical companies can charge when they sell their medicines to pharmacies. This price control is not only applicable for old medicine but also on any new medicine that comes into the market. As a result, the overall cost of Canada drugs is drastically reduced and the pharmacies can charge their customers less for the cost of these drugs.
You will also find a drug formulary in state in Canada that restricts the use of Canadian drugs that are new in the market and are expensive to buy. The senior citizens of Canada, being the highest users of prescription drugs, have the authority to negotiate with the pharmaceutical companies directly to have them lower the cost of their medicines. When the pharmaceutical companies reduce the cost of specific Canada drugs, these drugs are then included in the drug formulary of the state.
The liability cost of the Canadian pharmaceutical companies is also lower than that in the USA. This is because Canadian customers are less liable to press legal charges on pharmaceutical companies than the US customers. And even when a Canadian customer files a lawsuit and wins it, the damages awarded are much lower than what is awarded in the US courts. Hence, Canada drugs companies don’t need to keep this liability on a high priority list.
The standard of living in Canada also contributes to the lower cost of Canadian drugs. Since the American standard of living is at least 25 to 30 percent higher than that in Canada, the cost of medicines in the USA is higher.
So, as you can see, it is not because pharmaceutical companies charge more in USA that they can charge less for Canadian drugs. The government in Canada is acutely aware of the medicine costs in the country. It may be worth noting that even when the expenditure on drugs is going up every year, the cost of patented Canada drugs has reduces in the past decade. The Patented Medicine Prices Review Board in Canada sees to it.
You need to know why Canadian drugs are so much cheaper than American drugs. This is when you will be able to remove your misconception about Canada drugs and buy with confidence.
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