Sandoz, a leading generic drugmaker, is set to introduce unbranded weight-loss and diabetes drugs in Canada at discounts of up to 70% compared to their branded counterparts, as key patents are due to expire in 2026. This move could significantly lower costs for patients and potentially reshape the market for these medications.
Richard Saynor, CEO of Sandoz, one of the world’s largest generic pharmaceutical companies, told the Financial Times that while pricing for its generic version of semaglutide—the active ingredient in Novo Nordisk’s blockbuster drugs Ozempic and Wegovy—has not been finalized, a price reduction of 60% to 70% off the branded drugs’ list price is feasible. In Canada, a month’s supply of branded drugs like Ozempic, Wegovy, or Eli Lilly’s Mounjaro and Zepbound, which use tirzepatide, typically costs between $200 and $400.
The patent for semaglutide in Canada is set to expire in January 2026, and Sandoz has already initiated the approval process for its generic versions, though they are not yet approved. Saynor suggested that as more generic competitors enter the market, prices could drop even further. “If you were selling this at $40 or $50 a month, the market could be two or three times bigger in terms of the number of patients,” he noted, highlighting the potential for increased access to these treatments.
The lower prices in Canada could also spark significant interest from the United States, where branded weight-loss and diabetes drugs carry a list price of around $1,000 per month, though patients can sometimes purchase them directly from manufacturers for about half that amount. Despite U.S. regulations aimed at limiting cross-border purchases, Americans often buy prescription drugs from Canada due to the substantial cost savings. Notably, the U.S. Food and Drug Administration has permitted Florida to import certain medications from Canada, and other states have sought similar approvals.
Kevin Duane, who owns an independent pharmacy in Jacksonville, Florida, emphasized the potential impact of Canadian generics. “If Canada goes generic like we are expecting, then I think Florida would have to apply to the FDA to expand the Canadian import program,” he said, noting that access to these drugs could benefit “tens of millions of patients” due to the significant cost savings. Florida, the third-most populous state in the U.S., could see particularly high demand.
The Canadian Pharmacists Association reported that in 2023, as demand for Ozempic surged, up to 15% of prescriptions in British Columbia were dispensed to American patients. Joelle Walker, the association’s vice-president for public and professional affairs, expressed optimism about generics improving affordability for Canadians managing diabetes and obesity. However, she stressed the need for “the right monitoring and safeguards” to prevent supply chain pressures and ensure access for Canadian patients.
Canada’s health department emphasized that regulations prohibit companies from exporting drugs intended for the domestic market if doing so would cause or exacerbate shortages. The department stated it would closely monitor the availability of weight-loss and diabetes medications and take action if necessary to protect the domestic supply.
Novo Nordisk, the maker of Ozempic and Wegovy, said it is “well equipped” to maintain its market position as patents expire in Canada. The company also noted that U.S. regulations prevent the importation of generic semaglutide until its U.S. patent expires in 2032. “We work closely with all levels of government to ensure access and availability of our medicines for Canadians and to limit the sale of our medicines to non-Canadian residents,” Novo said in a statement.