Canada has approved its first generic versions of the blockbuster diabetes drug Ozempic, marking a key milestone in the global race to make GLP-1 therapies more affordable. The country's regulator, Health Canada, has granted drug identification numbers to semaglutide injections developed by Dr Reddy's Laboratories. Semaglutide is the active ingredient in Ozempic, originally developed by Novo Nordisk.
The approval follows the expiry of Novo Nordisk's patent protections in Canada earlier this year in January, clearing the way for generic competition in one of the most closely watched drug categories globally.
The entry of generics is expected to significantly alter pricing dynamics. Historically, generic medicines in Canada are priced between 45% and 90% lower than branded versions. Globally, competition is already intensifying. In some markets, generic semaglutide is expected to bring monthly treatment costs down to as little as $14.
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The momentum for generics began building earlier this year when India became the first major market to roll out copycat versions of semaglutide. That move prompted Novo Nordisk to cut prices for both Ozempic and Wegovy locally, offering an early glimpse of how competition could reshape pricing worldwide.
Dr Reddy's may be the first to cross the finish line in Canada, but it won't be alone for long. Health Canada is currently reviewing multiple additional applications for generic semaglutide, signalling a crowded pipeline. As more players enter, pricing pressure is likely to intensify further, benefiting patients but squeezing margins for manufacturers.
The regulator has pointed to a surge in generic drug submissions over the past decade, alongside increasing complexity in applications, as key reasons for longer review cycles. Even so, Dr. Reddy's application was cleared within the agency's standard 180-day review window.
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