Healthy Returns: First Ozempic generics in Canada will be a test case for Novo Nordisk

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The day has finally come: we have the first-ever generic versions of Novo Nordisk‘s wildly popular diabetes drug Ozempic in North America. 

Health Canada approved the first one by Indian drugmaker Dr. Reddy’s ‌Laboratories on April 28, and later cleared another generic from Canada-based Apotex. The health agency said it is reviewing seven other generic versions of Ozempic for approval. 

To be clear, these generics are only available in Canada and not the U.S. Other generic versions of the drug have been available in India. 

Some analysts also don’t expect the impact of new Canadian generics to spill over into the U.S. Even so, Ozempic sales here may be pressured by other factors, such as competition with Eli Lilly’s Mounjaro. 

Still, those two new generics in Canada likely mark the start of a decline in international revenue of semaglutide, the active ingredient in Ozempic and Novo’s obesity drug Wegovy, BMO Capital Markets analyst Evan Seigerman said in a note late last month. 

They will also be a test case for how well generics can compete against branded GLP-1 treatments, he added. 

The firm will look at “how quickly pricing compression and revenue erosion impact Ozempic in the market as a proxy for other future generic entries,” Seigerman said.

But how’s Novo thinking about it?

Novo sees a low single-digit impact of generics, Emil Kongshøj Larsen, the company’s executive vice president of international operations, said on an earnings call this week. 

Larsen added that the “leading tactic” in Canada is Novo’s savings card, which has seen “very good uptake” for both Ozempic and Wegovy. 

Larsen also highlighted one big upcoming change: Once three generic competitors are on the market, Canadian policy mandates a 65% price cut to Novo’s list price. 

But Larsen said, “We know, sort of, the game there, and we are ready to play it, particularly with the savings card.”

We’ll be watching to see when that third generic enters the market, so stay tuned for our coverage. 

Feel free to send any tips, suggestions, story ideas and data to Annika at a new email: annika.constantino@versantmedia.com.