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 said on Tuesday.
Several drugmakers are developing lower-cost versions of Novo Nordisk’s diabetes drug Ozempic, reducing monthly prices for some users.
In March, India became the first major market to launch copycat versions of semaglutide after the expiration of some patent protections, prompting Novo Nordisk to cut prices of Ozempic and its obesity drug Vegovy in the country.
“Investors will closely follow market developments in Canada as a test case to see whether generics can compete with branded peptides.” said BMO Capital Markets analyst Evan Segerman.
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, positioning itself among the first wave of companies bringing copycat versions of the blockbuster GLP-1 therapy to market. The company had said in November that it hoped to enter the sector soon.
Novo Nordisk, meanwhile, is facing increasing sales pressure as rival Eli Lilly’s GLP-1 drugs, Monzaro and Zepbound, continue to gain market share, eroding the Danish drugmaker’s early lead in the GLP-1 market.
Canadian generic entry is likely to remain a local headwind, Seegerman said, adding that stronger U.S. intellectual property protections should prevent meaningful spillovers, even if Ozempic faces increasing competition from drugs like Monzaro.
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 drugs are 45% to 90% cheaper than brand-name versions.
Dr Reddy’s and Novo Nordisk did not immediately respond to Reuters requests for comment.
