Why Canadian Pharmacies Are Cheaper Than US Pharmacies

There are three basic reasons why Canadian pharmacies are cheaper than US pharmacies; they are; a weaker Canadian dollar, prices of drugs regulated by the Canadian government and the quicker availability of generic substitutes.

Prescription medication in the U.S costs far more than any where else in the world. This is because the U.S is the only industrialized nation that does not use price controls to hold down drug costs. Overall estimates conclude that over a million Americans purchased drugs from Canadian online pharmacies in 2002, with this number slated to increase as drug costs continue to rise.

Most prescription drugs, though not all, are cheaper in Canada than in the U.S. because the Canadian government has price control regulations in place. Most drugs cost less in Canada, because the Canadian government negotiates medication prices with the drug manufacturers and controls the cost for Canadian consumers. In the U.S, medication is available at market-driven prices and so is subject to the same economic pressures as other consumer products. Where as in Canada, the practice of price control keeps the costs of drugs at reasonable levels. Most Canadian pharmacies offer discounts of between 30% - 80%. This means huge savings for especially American consumers. In 1987 the Canadian government created the Patented Medicine Prices Review Board, a quasi-judicial body that reviews pharmaceutical prices and sets limits for patented drugs and medicine prices.

Another reason is the fact that Canadian drug companies are not allowed to market their products directly to consumers. What this means is that so-called direct-to-consumer marketing influences the prices of drugs, causing them to increase. According to the Pharmaceutical Research and Manufacturers of America, drug companies spent roughly $3 billion on consumer advertising, which is directly linked to its pricing.

As the Canadian dollar is much cheaper than the U.S greenback, the rate of exchange also plays a big role in why Canadian pharmacies are cheaper than their U.S counterparts.

And lastly the third reason for Canadian pharmacies being cheaper is the fact that drug patents in Canada expire 5 years earlier than in the U.S. This means that generic drugs hit Canadian shelves quicker and so brings down the price of the pharmaceutical manufactured drugs as well.

So why do Americans buy drugs from Canadian pharmacies? The first is reason is the absence of a language barrier, and the second is Canada's close proximity to the U.S. Canada also has a reputation for having an excellent pharmacy regulation system in place. And even though it is technically illegal to buy prescription drugs from across the border, most Americans continue this trend as it is not only convenient but inexpensive as well.