Pan-Canadian Tiered Pricing Framework

The Pan-Canadian Generic Value Price Initiative Generic Pricing Framework, as outlined below, was implemented effective April 1, 2014.

Tiered Pricing Framework for New Generic Drugs
Pan-Canadian Generic Value Price Initiative –Generic Pricing Framework1
Category2 Description% of BrandProgressionNotes
New single source (i.e. only one manufacturer of a generic drug) 75% of brand if product listing agreement (PLA) or pricing agreement for brand exists in any jurisdiction Other single source: 85%

Products at this level will be reassessed after 2 years3
As soon as another manufacturer begins selling its version of the drug in any jurisdiction, the price of the drug will drop to the next tier
(i.e. 75% to 50% to 25%)
1 year retro-activity on this section of the pricing framework

Option for PT to retain PLA or pricing agreement with brand if provides better value
Two generics 50% Option for PT to retain PLA or pricing agreement with brand if provides better value
Three or more generics 25% Oral solid4
35% All dosage forms other than oral solids (e.g., liquids, patches, injectables, inhalers, etc.)
Pan-Canadian – current molecules
Pan-Canadian 15% 15% Oral solid *amlodipine besylate, *atorvastatin calcium, *clopidogrel bisulfate, *pantoprazole sodium, *ramipril, *simvastatin
*Price Change Effective April 1, 2017
Pan-Canadian 18% 18% Oral solid citalopram hydrobromide, donepezil HCl, ezetimibe, gabapentin, metformin, olanzapine, omeprazole 20mg, quetiapine, rabeprazole sodium, rosuvastatin calcium, venlafaxine HCl, zopiclone

For a list of all pan-Canadian select molecules and established price points, please click here:
pan-Canadian select molecules
1 This framework will be reassessed after 3 years.
2 Price reduction to the next pricing tier is triggered by market entry of additional competitors.
3 After 2 years PTs will reassess continued listing of the single source product against international prices and the number of Notice of Compliance approvals that Health Canada has granted for the drug.
4 Modified release products, will be treated the same as regular tablets and capsules.

Bridging Period

A one-year bridging period for the pCPA Generics Initiative will be effective April 1, 2017. The bridging arrangement will result in additional savings and allow time for the evaluation of the current Generics Initiative, as well as explore next steps. Under the bridging arrangement, the price of the following molecules will be further reduced from 18% to 15% of the brand reference price:

  • Atorvastatin
  • Amlodipine
  • Simvastatin
  • Pantoprazole
  • Ramipril
  • Clopidogrel

Centralized Price Confirmation Process

Beginning February 9, 2015, and until this process is transitioned to the office of the Pan-Canadian Pharmaceutical Alliance, Saskatchewan will serve as the single point of entry for the price tier confirmation process. Manufacturers are requested to submit the Tiered Pricing Confirmation Form electronically for all new generic products. The Saskatchewan Drug Plan will verify that the Tiered Pricing Framework applies to the product, determine the appropriate price tier, and advise the manufacturer and all participating jurisdictions of the appropriate price tier.

The Tiered Pricing Confirmation Form does not replace the product listing requirements in place in participating jurisdictions. Submission to the price tier confirmation process may be done concurrently with listing submissions to individual jurisdictions.

For a copy of the Tiered Pricing Confirmation Form click here:
Tiered Pricing Confirmation Form

Completed Tiered Pricing Confirmation Forms or inquiries regarding the price confirmation process may be sent to:

PDF files:
Pan-Canadian Price Tier Confirmation Process Flowchart

Frequently Asked Questions

For frequently asked questions about the Pan-Canadian Generic Value Price Initiative Generic Pricing Framework and Centralized Price Confirmation Process, please click here:
Generic Framework Qs and As

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