A comparison of brand-name drug prices between Canadian-based Internet pharmacies and major U.S. drug chain pharmacies

Abstract

Background: Many Americans have been purchasing their medications from online Canadian pharmacies. Although it is commonly perceived that medications are less expensive in Canada than in the United States, little research has been done to quantify this difference.

Objective: To compare the prices of retail brand-name medications between Canadian Internet pharmacies and major U.S. drug chain pharmacies with online pricing.

Design: Cross-sectional study.

Setting: 12 Canadian Internet pharmacies and 3 major online U.S. drug chain pharmacies.

Measurements: The authors calculated the per unit and annual savings (in U.S. dollars) for an American if he or she were to buy the 44 brand-name medications most commonly purchased through the Internet from Canadian Internet pharmacies instead of from an online U.S. drug chain pharmacy.

Results: Americans can save a mean of approximately 24% per unit of drug if they purchase their medications from Canadian Internet pharmacies instead of from major online U.S. drug chain pharmacies. Forty-one of the 44 brand-name medications examined were less expensive in Canada. The medications offering the largest mean yearly savings were Zyprexa (olanzapine) (Eli Lilly, Indianapolis, Indiana) (1159 dollars), Actos (pioglitazone) (Eli Lilly, Indianapolis, Indiana) (852 dollars), and Nexium (esomeprazole) (AstraZeneca, Wilmington, Delaware) (772 dollars). Only 3 medications, all in the erectile dysfunction category, were more expensive in Canada.

Limitations: Potential savings may vary because of temporal fluctuations in drug prices.

Conclusions: Brand-name medications are often substantially less expensive when purchased from Canadian Internet pharmacies instead of from major online U.S. drug chain pharmacies.