Canada’s competition watchdog calls for pharmacists to have wider access to pet medications

Canada’s competition watchdog calls for pharmacists to have wider access to pet medications

The government agency warns that veterinarians’ current exclusive distribution model raises prices for pet owners.

The Competition Bureau of Canada has recommended that provincial and territorial officials mandate pharmacist access to pet medications after receiving complaints about industry practices and regulations limiting who can distribute them.

“While veterinarians are still required to prescribe medications, online pharmacies provide cost-effective and safe alternatives for filling them in many cases, often providing significant savings compared to veterinary clinics,” it says.

Allowing pharmacists to dispense pet medications would increase consumer choice and convenience without compromising pet health. It would also offer pet owners with chronic medication a cheaper and time-saving alternative than accessing veterinarians.

Despite veterinarians and pharmacists being legally allowed to dispense pet medication in Canada, reports suggest a widespread practice of “exclusive distribution” by veterinarians. According to the government agency, this limits options and raises pet owners’ prices.

Market background

According to the Bureau’s analysis, Canadians’ veterinary costs have reached nearly C$9.3 billion ($6.6B/€6.1B) annually, leading to increased concerns around affordability.

Veterinary costs range between C$85 ($61/€56) and C$130 ($93/€85), while emergency trips may be an additional C$215 ($154/€142) to C$1,615 ($1163/€1067) per year.

The inflation is partly linked to limited competition in pet medications, which tend to be sold directly through veterinarians who benefit financially from prescribing and dispensing medications.

The Bureau also highlights that growing consolidation in the corporate-owned veterinary market threatens the creation of a monopoly. Thus, this recommendation hopes to ease financial pressures as the demand for quality pet healthcare continues to rise.

Successful initiatives

While extending the recommendations, the Competition Bureau considers the case of the UK pet medicine market, which witnessed increased competition and reduced medication costs following a similar legislative amendment in 2005.

Within Canada, a partnership between Quebec’s L’Ordre des Pharmaciens, a pharmacy regulation organization, and national distributors in 2021 to grant pharmacists access to pet medications led to a similar outcome.