How U.S. Drug Price Policies Could Affect Canadians – and How Centrum Pharmacy Helps You Save by Buying Canadian

Recent announcements from major pharmaceutical companies—triggered by U.S. President Donald Trump’s push to lower drug prices in the United States—may lead to rising medication costs in Canada. His administration’s “most favoured nation” approach pressures drugmakers to reduce prices in the U.S. by increasing them in other developed countries.

Eli Lilly’s recent Mounjaro price hike in the UK is part of a broader “rebalancing” strategy that could ripple into Canada. The company has already stated it will be making pricing adjustments in “certain governments” by September—likely including Canada, which historically enjoys lower prices compared to the U.S.

Why This Could Push Canadian Prices Up

Most Favoured Nation pressure = higher prices abroad

• Trump’s policy essentially says: If you want to sell in the U.S. at a lower price, you have to raise your price in other developed markets.

• Canada’s drug prices are closely monitored against an international reference basket that includes European countries like the UK. If those countries’ prices go up, it raises the allowable ceiling in Canada.

PMPRB’s international price referencing effect

The Patented Medicine Prices Review Board (PMPRB) sets Canadian maximum prices partly based on foreign reference pricing. UK hikes automatically open the door for higher Canadian launch prices or increases on existing drugs.

Small market = less negotiating power

Canada accounts for just 2% of global pharmaceutical sales. Under U.S. political pressure, drugmakers may focus price increases on smaller markets where resistance is limited, potentially leading to either direct price hikes or slower access to negotiated discounts.

Ripple effect beyond Mounjaro

Once a major brand successfully increases prices in one market, other companies often follow. That could mean upward pricing pressure for other high-demand medications—particularly for diabetes, obesity, cancer, and rare diseases—within the next PMPRB review cycles.

Bottom line for Canada

While Mounjaro’s current Canadian price is still much lower than in the U.S., the UK price hike signals a coordinated global strategy to lift prices in countries like Canada to offset U.S. cuts. Over the next year or two, Canadians could see:

• Higher list prices for new medications.
• Smaller public plan discounts.
• Slower addition of new drugs to provincial formularies if negotiations stall over higher prices.
  

Centrum Pharmacy’s Canadian Solution

At Centrum Pharmacy, we believe your health should never be compromised by politics, trade disputes, or supply chain disruptions. That’s why we:

• Proactively recommend Canadian-made alternatives to U.S.-manufactured medications whenever available.
• Help you find equivalent Health Canada–approved products that offer the same therapeutic benefit at a lower cost.
• Work with our suppliers to secure local inventory, minimizing the risk of shortages.
  

By choosing Canadian-made medications, you can:

• Support our domestic pharmaceutical industry.
• Save money without sacrificing quality.
• Reduce dependency on foreign supply chains.

If you’re concerned about how these changes might affect your medications, speak to one of our pharmacists today. We can review your prescriptions, check availability, and ensure you’re getting the most cost-effective option—without compromising your care.

Disclaimer: The medical information on this site is provided as an information resource only and is not to be used or relied on for any diagnostic or treatment purposes. This information does not substitute for professional diagnosis and treatment. Please do not initiate, modify, or discontinue any treatment, medication, or supplement solely based on this information. Always seek the advice of your healthcare provider first. Full Disclaimer.