Competition Bureau advances an investigation into Express Scripts Canada's business practices in the pharmacy sector

GATINEAU, QC, April 11, 2025 /CNW/ - The Competition Bureau has obtained a court order to advance an investigation into Express Scripts Canada, a company that provides prescription drug claim processing services and other services for insurance providers and pharmacists. The company also operates four mail-order pharmacies across Canada, except for Quebec.

The order, granted by the Federal Court, requires Express Scripts Canada to produce records and written information, and provide oral testimony, that are relevant to the Bureau's investigation.

The Bureau is looking into alleged anti-competitive conduct that can prevent or limit competition in the pharmacy retail market, including:

• Patient steering through Preferred Provider Networks that force or induce Canadians to use Express Scripts Canada owned or associated pharmacies instead of their pharmacy of choice; and
  
  
• Margin squeezing that reduces the margins of its retail pharmacy competitors by increasing its Pharmacy Benefit Manager service fee and by requiring a costly and burdensome audit process.

The Bureau is investigating this conduct under the Competition Act's restrictive trade provisions. These provisions protect against abuse of dominance and agreements or arrangements between businesses that harm competition.

There is no conclusion of wrongdoing at this time.

Quick facts

• Express Scripts Canada is a subsidiary of US-based Express Scripts which is owned by the Cigna Group, a US-based global health company.
• A Pharmacy Benefit Manager, commonly referred to as a PBM, provides prescription drug claim processing services for insurance providers and pharmacists.
• A Preferred Provider Network agreement, also referred to as a Preferred Pharmacy Network agreement or a PPN, aims to establish a network of "preferred" pharmacies for a particular insurance provider. In this agreement, an insured individual is either required or encouraged to fill their prescriptions from a pharmacy operator in their insurance provider's network.
• The Competition Act includes provisions to protect Canadian consumers and businesses against restrictive trade practices, including abuse of dominance and agreements that may harm competition.
• The Bureau is committed to protecting competition in the pharmacy sector. Refer to the Associated links below to learn more about published reports and enforcement action taken in this sector in recent years.

Associated links

• Competition Bureau submission to the Ontario Ministry of Finance consultation on the preferred provider networks in the employer-sponsored drug insurance sector
• Competition Bureau preserves competition in supply of pharmacy products and services in Saskatchewan
• Competition Bureau approves transfer of interests in 10 Quebec pharmacies from Metro to Familiprix, McKesson
• Competition Bureau recommends increasing competition in the sale of pet medication
• Section 11 order in the Competition Act
• Changes to the provisions on restrictive trade practices introduced with amendments to the Competition Act in 2022-2024

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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