Canada’s public drug program spending reaches $18.4 billion in 2023, medications like Ozempic driving cost
Spending on Ozempic represented 20% of total growth in public drug program spending in 2023
—Public drug program spending in Canada reached $18.4 billion in 2023, a 6.7% increase from the previous year according to data recently released by the Canadian Institute for ϱ Information (CIHI). The increase reflects the rising demand for Ozempic (semaglutide); individuals requiring high-cost drugs ($10,000 or more) make up nearly half (45.3%) of public drug spending overall.
Drugs used to treat type 2 diabetes are largest contributors to spending growth
CIHI’s 2023 data reveals that medications used to treat type 2 diabetes and/or obesity were responsible for much of the growth in public drug spending. Classes of medications to treat diabetes (glucagon-like peptide 1 [GLP-1] analogues and sodium–glucose cotransporter 2 [SGLT2] inhibitors) rose to a combined total of $1.1 billion, representing approximately 25% of the increase in public spending. The majority of this increase was due to spending on Ozempic (a GLP-1 analogue), which reached $662 million in 2023 (up from $434 million in 2022).
“These increases reveal the impact of new, high-demand medications on Canada’s public drug program,” said Tracy Johnson, director of Pharmaceuticals at CIHI. “With rising costs, it is critical to ensure that drug coverage programs remain equitable and sustainable for all Canadians, particularly those with complex health needs.”
Other key findings include the following:
- Spending on biologic drugs continued to increase in 2023, accounting for $5.3 billion or nearly 29% of total public drug program spending. Notably, the use of biosimilars (more affordable alternatives to biologic drugs) also saw an increase, making up 16.1% of biologic spending in 2023, compared with 13.7% in 2022.
- In 2023, 26.3% of seniors were prescribed 10 or more unique drug classes, with treatments for cardiovascular disease — particularly statins — remaining the most commonly prescribed medications.
- Prescribed opioids and benzodiazepines for seniors saw a decrease, reflecting growing safety concerns, such as increased adverse drug reactions and risk of falls.
Improving the accessibility of drug spending data
This latest update to CIHI’s new Pharmaceutical Data Tool is part of an ongoing Pharmaceutical Roadmap initiative that aims to enhance the accessibility of drug data for decision-makers, researchers and policy-makers across Canada.
The tool, which provides a comprehensive overview of public drug programs at the federal and provincial/territorial levels, is designed to help Canadians better understand the factors that drive public drug spending.
About CIHI
The Canadian Institute for ϱ Information (CIHI) is an independent, not-for-profit organization dedicated to providing essential health information to all Canadians.
ϱworks closely with federal, provincial and territorial partners and stakeholders throughout Canada to gather, package and disseminate information to inform policy, management, care and research, leading to better and more equitable health outcomes for all Canadians.
ϱ information has become one of society’s most valuable public goods. For more than 30 years, ϱhas set the pace on data privacy, security, accessibility and innovation to improve Canada’s health systems.
CIHI: Better data. Better decisions. ϱier Canadians.
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Canadian Institute for ϱ Information. Canada’s public drug program spending reaches $18.4 billion in 2023, medications like Ozempic driving cost. Accessed April 12, 2025.
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