In 2011, the generic share of the number of retail prescriptions was 60.1% equating to almost 317 million generic prescriptions. Growth of generic prescriptions was 9% compared to the previous year. Yet, generic pharmaceutical sales accounted for only 24.5% of the total cost of the Canadian prescription drug market,
totaling 5.4-billion dollars in drugstore and hospital sales. Canada’s total prescription drug expenditures now exceeds 22-billion dollars.

As the chart below illustrates, according to 2011 IMS Health data, the average cost of a brand-name prescription is now $73.76, while the average cost of a generic prescription is $25.04. The average price of a brandname
prescription increased by 40% over the last 10 years. In comparison, the average cost of a generic prescription grew by 21%.

The generic share of retail prescriptions has grown from 43.5% in 2005 to a current high of 60.1%. The generic share of dollar purchases by drugstores and hospitals has grown from 17.3% in 2005 to 24.5% in 2011. This increased share for generics is as a result of changes to provincial and private sector drug programs which are relying more on generics as one of the best ways to contain fast-rising drug program costs. The variance of the generic share of prescriptions versus dollar purchases can be explained by the pricing differences of generic
products versus brands.