New Report Highlights Critical Role of Pharmaceutical Distributors in Canada's Healthcare System

Cision Canada

23-07-2025

As medication demand grows and complexity increases, the often-overlooked pharmaceutical distribution network proves vital to ensuring timely and equitable access.
TORONTO, July 23, 2025 /CNW/ - Canada's pharmaceutical supply chain faces growing challenges as the demand for medications continues to rise. Today, the Canadian Association for Pharmacy Distribution Management (CAPDM) released a landmark report—based on analysis conducted by IQVIA Canada—that shines a spotlight on the essential, though largely invisible, role of pharmaceutical distributors in safeguarding Canadians' access to medications.
The report, "Pharmaceutical Distribution: The Value and Challenges of Supplying Medications to Canada's Healthcare System," provides a behind-the-scenes look at the sector that supplies over 90% of prescription medications across Canada—an integral part of the healthcare system that continues to deliver under increasingly demanding conditions. Rising operational costs, increased demand for specialty medications, layers of regulatory requirements, and an outdated funding framework are limiting the sector's ability to adapt, invest, and scale in response to crises and market shifts.
"Distributors are the driving force behind Canada's medication supply," said Angelique Berg, president and CEO of CAPDM. "From high-volume urban centres to remote northern communities, pharmaceutical distributors ensure medications arrive safely, securely, and on time. It's a level of reliability most people take for granted, but one that requires considerable expertise and a robust infrastructure."
Key findings from the report include:
Distributors deliver 91% of all prescription medications in Canada, processing an average of 240,000 orders weekly for pharmacies, hospitals, and clinics.
More than 80% of orders are delivered within 24 hours, a testament to the efficiency and extensive national reach of the nation's distribution network.
Rising demand for cold chain medications, such as biologics and specialty drugs, is increasing the complexity of distribution logistics.
Despite operating across one of the world's largest and most geographically diverse countries, distributors ensure equitable access, even in hard-to-reach rural and remote areas.
The sector has shown remarkable resilience in navigating challenges ranging from climate events to global supply chain disruptions, maintaining better than 99% accuracy.
Operating costs for distributors increased by 23% (based on available data for 2021 and 2022), driven by fuel price surges, rising labour costs, and increased demand for cold chain management, while funding has remained relatively stagnant for more than 15 years.
As healthcare delivery becomes more specialized, decentralized, and patient-centered, pharmaceutical distribution must be recognized as a strategic asset. Distributors are increasingly relied upon to manage complex inventories, ensure safe delivery of temperature-sensitive medications, and support emergency response efforts.
"Distributors have consistently demonstrated their ability to adapt and deliver—quietly, reliably, and without disruption," said Berg. "It's time to bring their role into the spotlight and ensure they are included in national conversations about healthcare planning, access, equity, and system resilience."
To view the full report, click here.
About CAPDM
The Canadian Association for Pharmacy Distribution Management (CAPDM) is the national trade association and voice representing Canada's pharmaceutical supply chain. CAPDM members play a key role in simplifying a complex supply chain infrastructure and are responsible for delivering over 90 per cent of all retail pharmaceuticals in Canada, streamlining orders and deliveries between hundreds of drug manufacturers and more than 12,000 dispensing points nationally. CAPDM works with pharmaceutical distributors, manufacturers, service providers, pharmacies, and governments to ensure a robust and resilient system for delivering essential medicines to Canadians. For more information, visit capdm.ca.