Health Canada has approved the first generic version of Novo Nordisk’s blockbuster diabetes drug Ozempic, developed by India’s Dr. Reddy’s Laboratories, according to the regulator’s website on Tuesday.
Multiple pharmaceutical companies have been working on lower-cost alternatives to Ozempic, contributing to reduced monthly treatment costs for some patients.
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In March, India became the first major market to launch generic versions of semaglutide after certain patent protections expired, prompting Novo Nordisk to lower the prices of Ozempic and its obesity treatment Wegovy in the country.
“Investors will follow the evolution of the market in Canada closely as a test case to see if and how generics can compete with branded peptides.” said BMO Capital Markets analyst Evan Seigerman.
Swiss generic drugmaker Sandoz has said it plans to launch a generic version of Novo Nordisk’s diabetes drug Ozempic in Canada by June this year, placing itself among the first companies to introduce copycat versions of the blockbuster GLP-1 therapy. The company had previously indicated in November that it expected to be an early entrant in the market.
Novo Nordisk is facing increasing sales pressure as Eli Lilly’s GLP-1 treatments, Mounjaro and Zepbound, continue to expand their market share, gradually eroding the Danish drugmaker’s early advantage in the segment.
Seigerman said the entry of generic drugs in Canada is expected to remain a localized challenge, noting that strong intellectual property protections in the U.S. are likely to limit any significant spillover effects, even as Ozempic faces rising competition from treatments like Mounjaro.
Health Canada stated that it is currently evaluating eight additional applications for generic semaglutide from various manufacturers and anticipates further decisions in the coming weeks and months.
In Canada, generic medicines are typically priced 45% to 90% lower than their branded counterparts.
