Canadian pharmaceuticals market forecast to grow 2.55% a year, with Rx drugs reaching $20.1 billion by 2014

The Canadian pharmaceutical market is expected to continue on an upward compound annual growth rate (CAGR) of 2.55% in US dollar terms and 4.3% in local currency terms, according to Business Monitor International. Growth will be driven by the ageing population which will increase demand for chronic diseases medicines. BMI also expects pricing reforms to influence this outlook, although until patented and generic drug prices are more aligned across provinces and territories we will maintain our current view on spending.

An aging population is relatively unsurprising for a mature market and developed economy like Canada - the USA and the UK share this issue; therefore drugs in therapeutic areas such as diabetes, obesity and cardiovascular disorders will increase their market share by value. This is underlined by the fact that cardiovascular medicines formed the largest therapeutic segment of the Canadian pharmaceutical market by value at $4.34 billion in 2009; it is expected to rise to $4.9 billion by 2014. However, the underlying rise in spending will be determined by purchasing power and improved drug pricing strategies.

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