A just-released study by the Fraser Institute confirms that brand-name drugs are much cheaper in Canada than the United States. It also shows the price difference has increased in recent years.

According to the study, after currency adjustments:

• In 2007, Canadians paid an average of 53 percent less than Americans for the 100 most common brand-name drugs
• In 2006, Canadians paid 51 percent less
• In 2003, Canadians paid 43 percent less

This increasing price disparity represents a great buying opportunity for U.S. prescription drug consumers who purchase medications from Canadian pharmacies.

What’s more, if you factor in the growing strength of the U.S. dollar compared to the Canadian dollar, the price difference is even greater. In many cases, you can save up to 80 percent by buying prescription drugs from Canada.

The Canadian Broadcasting Corporation (CBC) has produced an informative story looking at trends in Americans buying drugs from Canadian online pharmacies.

The story notes that at the start of decade, Americans were buying more than two million packages of prescription drugs annually from Canadian and other foreign pharmacies — adding up to a billion-dollar business. Since then, a rising Canadian dollar along with Medicare Part D have led to a decrease in Canadian drug purchases among Americans.

But the tide is shifting back in favor of Canadian online pharmacies, the CBC reports. The story points out that the Canadian dollar has fallen by 20 percent over the past six months, relative to the U.S. dollar, making Canadian drugs even more of a bargain. In addition, President Obama is eager to sign proposed legislation allowing Americans to purchase drugs legally from licensed Canadian pharmacies.

The CBC story includes a chart that compares prices for various medications at CanadaDrugs.com (a member of the Canadian Online Pharmacies network) and the U.S-based Drugstore.com.