Building Canada’s Pharmaceutical Sovereignty: Policy Actions Needed Today

January 2, 2026, Toronto - Canada’s pharmaceutical manufacturers play a critical role in the country’s health security and economic resilience. The members of the Canadian Pharmaceutical Manufacturers and Exporters Alliance supply more than one third of all prescriptions dispensed in Canada, support more than 33,000 skilled jobs, and exported over 11 billion dollars in medicines to the United States in 2024.

However, growing protectionism, supply chain pressure, and competitive measures abroad mean Canada must take deliberate action if it wants to retain and expand this domestic capability. Through recent submissions to the federal government, CPMEA has outlined the policy direction needed to secure Canada’s pharmaceutical advantage.

Supporting Domestic Production Through Procurement

Canada’s public drug plans spend more than $18 billion dollars each year, yet there is currently no preference for medicines made in Canada. This means that even when Canadian companies can supply high quality products, they must compete with imported medicines without the benefit of a stable home market.

A “Canada First” procurement approach would provide a reliable foundation for domestic investment, reinforce supply chain stability, protect high value industry jobs, and strengthen national resilience. The federal government must direct the Public Service Health Care Plan, Veterans Affairs, military drug procurement, and the National Pharmacare program to support domestic sourcing.

Making Canada Competitive for Pharmaceutical Investment

Other jurisdictions, including the United States and European Union, have introduced tax and industrial incentives to encourage reshoring of pharmaceutical manufacturing. Canada now risks losing industrial activity if similar measures are not available here.

CPMEA recommends modernizing fiscal policies so that companies investing in production in Canada are not disadvantaged compared to competitors in other countries. This includes support for tax credits for technology upgrades, facility expansions, and product transfers, as well as improvements to research and development incentives for generics and biosimilars. Such measures would encourage continued investment in Canadian infrastructure, innovation, and workforce development.

Faster Approval Processes for Canadian-Made Medicines

Regulatory timelines play an important role in both patient access and industrial strategy. The Minister of Health has acknowledged the need to modernize the drug approval process for generics. To support this shift, CPMEA recommends increased resources for Health Canada to consistently meet its 180-day approval target and the establishment of a priority review pathway for submissions from Canadian manufacturers.

Faster and more predictable timelines would better align the regulatory system with the government’s industrial and economic policy objectives.

Protecting Access to the United States Through CUSMA

The United States remains Canada’s most important export market. Recent American policy developments, including the ongoing Section 232 investigation into pharmaceuticals and new domestic procurement preferences, pose potential risks to Canadian exporters.

As CUSMA undergoes formal review, CPMEA is urging Canadian negotiators to ensure continued access to the United States market, protect Canadian manufacturers from new tariffs or quota barriers, and secure reciprocal treatment in areas such as government procurement and regulatory oversight.

Canadian-made generics and contract manufactured medicines support American health security, and this contribution should be recognized through clear and enforceable trade provisions.

Medicine Production as a National Security Priority

Canada is highly dependent on imported medicines and active ingredients. In a major global disruption, this could affect the country’s ability to maintain continuity in care, public health, and national defense systems. Other countries have already recognized domestic drug manufacturing as a core component of national security preparedness.

Canada should adopt similar measures by treating pharmaceutical production as strategic capacity, supporting domestic stockpiles, and ensuring ongoing access to essential medicines within Canadian borders.

A Path Forward

Canada has the talent, facilities, and expertise to be a global leader in pharmaceutical manufacturing. By updating procurement practices, improving tax competitiveness, accelerating regulatory processes, strengthening trade protections, and recognizing medicine production as a national asset, the country can build a more secure and self-reliant pharmaceutical system.

The path is clear, and the economic and health benefits are significant. Now is the time to take action to secure Canada’s pharmaceutical future.

---

The Canadian Pharmaceutical Manufacturers and Exporters Alliance (CPMEA) – Alliance fabricants et exportateurs pharmaceutiques du Canada (AFEPC) represents pharmaceutical companies that manufacture in Canada. We have come together in an Alliance to tell the story of drug production in Canada and to raise awareness of the unique issues facing our industry.

Click here to contact us, or email us directly at info@cpmea.ca.