Canada approves first generic Ozempic, slashing diabetes drug costs

Canada has become the first G-7 nation to approve a generic version of Ozempic. Health Canada greenlit Apotex’s injectable semaglutide, a medication used to treat Type 2 diabetes in adults. The move could significantly lower costs for patients relying on this drug. The newly approved generic contains the same active ingredient as Novo Nordisk’s Ozempic. Apotex, a Toronto-based pharmaceutical company, will manufacture the medication. This marks the second generic semaglutide authorised in Canada.

Pricing for generics typically follows a predictable pattern. The first version usually costs 75 to 85 per cent of the brand-name drug’s price. Once a second generic enters the market, prices for both drop to around 50 per cent of Ozempic’s cost. With three or more competitors, the price could fall further to roughly 35 per cent of the original.

The approval of Apotex’s generic semaglutide introduces a more affordable option for diabetes treatment. As competition grows, patients may see even greater reductions in medication costs. This decision also positions Canada ahead of other G-7 countries in expanding access to generic diabetes drugs.