Generic Drugs

pan-Canadian Tiered Pricing Framework (TPF)

The pan-Canadian Generic Tiered Pricing Framework (TPF) initially began on April 1, 2014. Through the collective of the pan-Canadian Pharmaceutical Alliance (pCPA) various initiatives have resulted in substantial savings.

The TPF is comprised of three pricing tiers and applies to any generic product, where the current or previously available brand reference product was eligible for reimbursement by any pCPA jurisdiction.

The pCPA Office manages the TPF to evaluate and establish the price of generic products entering and exiting the Canadian market. The process takes into account various factors such as the number of competitors in the market and the price of the brand reference product.

The pricing tiers are shown in the following table.

TPF Tier Description % of Brand Reference Pricing Notes

Tier 1:

Established when the generic product is a single source (i.e. only one manufacturer of a generic product in the Canadian market)

Priced at 75% of brand reference price if product listing agreement (PLA) or pricing agreement for brand exists in any jurisdiction 

Priced at 85% of brand reference price if PLA or pricing agreement for brand product does not exist 

Products at this level will be reassessed after 2 years
 

Jurisdiction(s) have the option to retain PLA or pricing agreement with brand reference product if it provides a better value 

Tier 2:

Established when there are two generics on the Canadian market

Priced at 50% of brand reference price    

Tier 3:

Established when there are three or more generic products on the Canadian market 

Priced at 25% of brand reference price for oral solids and at 35% for all dosage forms other than oral solids (e.g., liquids, patches, injectables, inhalers, etc.)  

pan-Canadian Select Molecules

Effective April 1, 2018, a five-year initiative was introduced that reduced the prices of 67 of the most commonly prescribed drugs (pan-Canadian Select Molecules) in Canada. These are not part of the Tiered Pricing Framework process but rather are set at fixed prices. 

For Generic Pharmaceutical Manufactures

For a generic product to be listed on a public drug plan formulary, manufacturers are required to submit the TPF Form electronically to the pCPA Office for all generic products entering and exiting the Canadian market, including the pan-Canadian Select Molecules.

The pCPA Office will verify the Tiered Pricing Framework applies to the product, determine the appropriate price tier and advise the manufacturer and all participating jurisdictions of the assessment results.

The TPF Form does not replace the existing product listing requirements in participating jurisdictions.

TPF forms (request for pricing assessment):

For more information on the Tiered Pricing Framework please refer to the following:

Completed forms or inquiries regarding the TPF process may be sent to: [email protected]