Health Canada has approved the first generic version of Danish drugmaker Novo Nordisk’s blockbuster diabetes drug Ozempic made by Indian drugmaker Dr Reddy’s Laboratories, its website showed on Tuesday.
Several drugmakers have been developing lower-cost versions of Novo Nordisk’s diabetes drug Ozempic, driving down monthly prices for some users.
In March, India became the first major market to introduce copycat versions of semaglutide following the expiry of certain patent protections, prompting Novo Nordisk to cut prices for Ozempic and its obesity drug 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 has said it plans to launch a generic version of Novo Nordisk’s diabetes drug Ozempic in Canada by June this year, positioning itself among the first wave of companies seeking to market copycat versions of the blockbuster GLP-1 therapy. The company said in November that it expected to be an early entrant in the space.
Novo Nordisk is meanwhile facing mounting sales pressure as rival Eli Lilly’s GLP-1 drugs, Mounjaro and Zepbound, continue to gain market share, eroding the Danish drugmaker’s early first-mover advantage in the GLP-1 market.
Canadian generic entry is likely to remain a localized headwind, Seigerman said, adding that strong U.S. intellectual property protections should prevent meaningful spillover, even as Ozempic faces growing competition from drugs such as Mounjaro.
Health Canada said it is reviewing eight other applications for generic semaglutide from different companies and expects to make more decisions in the coming weeks and months.
In Canada, many generic medications are 45% to 90% cheaper than the brand-name versions.
Dr Reddy’s and Novo Nordisk did not immediately respond to Reuters’ requests for comment.
