The Economic Power of Canada’s Pharmaceutical Manufacturing Sector

May 22, 2025, Toronto - The pharmaceutical manufacturing industry in Canada is more than a cornerstone of our healthcare system—it is a critical driver of national economic growth, resilience, and security. 

As Canadian pharmaceutical manufacturers continue to provide high-quality, essential medicines to patients at home and abroad, their contributions to the broader economy are often underestimated. The industry’s impact extends well beyond the lab or production floor, shaping employment, innovation, and competitiveness across Canada.

Direct Economic Contributions

Pharmaceutical manufacturing in Canada directly supports thousands of high-quality jobs—from scientists and engineers to production workers, regulatory experts, and logistics professionals. These are not only well-paying positions but also careers that contribute to the development and delivery of life-saving treatments for Canadians.

Canadian drug manufacturers consistently invest in the discovery and improvement of technologies. This investment helps improve productivity and unlock future economic growth.

Manufacturing itself remains a vital part of Canada’s economic infrastructure. Pharmaceutical production facilities support regional economies across the country and contribute directly to national GDP. With every medicine produced locally, Canada reduces its reliance on foreign supply chains and strengthens its domestic capability.

Indirect and Spillover Effects

The economic impact of pharmaceutical manufacturing also extends through a wide network of suppliers, contractors, and service providers. These include clinical research laboratories,  specialized packaging companies, raw material producers, software developers, transportation firms, and many others that benefit from the strength and consistency of the industry.

The wages earned in the sector flow back into the economy through consumer spending, supporting local businesses and services. In addition, innovations in medicine often lead to improved health outcomes, which in turn reduce overall healthcare costs and support a more productive workforce.

Canada’s pharmaceutical manufacturing industry is also a significant contributor to exports, bolstering trade and enhancing Canada’s global competitiveness. Canadian-made medicines are trusted around the world, and international demand for these products continues to grow—particularly when reliability, quality, and compliance matter most.

A National Asset for Economic Resilience

Building and maintaining a robust domestic pharmaceutical manufacturing sector is not only a health imperative—it is a national security priority.  As global disruptions, supply chain pressures, and public health challenges continue to test resilience, Canada’s ability to produce its own medicines remains a vital national asset.

The Canadian Pharmaceutical Manufacturers and Exporters Alliance (CPMEA) continues to advocate for policies that support a vibrant domestic sector—one that creates jobs, drives innovation, and strengthens our economy while ensuring access to essential treatments made right here at home.

To learn more about how Canada’s pharmaceutical manufacturers are contributing to a stronger and healthier future, visit www.cpmea.ca.

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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.