Canada Generics Mark Start of Semaglutide International Revenue Decline: BMO

The two generic semaglutide injections approved by Health Canada in late April and early May likely mark the start of a decline in international revenue for the active ingredient in Ozempic and Wegovy, according to a late-April note from BMO Capital Markets analyst Evan Seigerman [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html].

Canada framed as a test case

Seigerman wrote that the two new Canadian generics will serve as a test case for how well generics can compete against branded GLP-1 treatments, and that his firm will be watching "how quickly pricing compression and revenue erosion impact Ozempic in the market as a proxy for other future generic entries" [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html].

Health Canada authorized the first generic semaglutide injection, filed by Dr. Reddy's Laboratories, on April 28, 2026, making Canada the first G7 country to approve a generic version of the molecule [Source: canada.ca/en/health-canada/news/2026/04/canada-becomes-the-first-g7-country-to-approve-a-generic-version-of-semaglutide.html]. A second generic, filed by Canadian-based Apotex, was authorized on May 1, 2026 [Source: canada.ca/en/health-canada/news/2026/05/canada-approves-second-generic-semaglutide-the-first-g7-country-to-do-so.html].

Novo Nordisk projects "low single-digit" impact

On an earnings call the week of May 7, Emil Kongshøj Larsen, Novo Nordisk's executive vice president of international operations, said the company sees a low single-digit impact from the generics [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html]. Larsen said the "leading tactic" in Canada is Novo's savings card, which has seen "very good uptake" for both Ozempic and Wegovy [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html].

Larsen also flagged an upcoming pricing trigger: once three generic competitors are on the market, Canadian policy mandates a 65% price cut to Novo's list price [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html]. Health Canada has stated it is currently reviewing seven other submissions for generic semaglutide and expects to make regulatory decisions on more of them in the coming weeks and months [Source: canada.ca/en/health-canada/news/2026/05/canada-approves-second-generic-semaglutide-the-first-g7-country-to-do-so.html].

U.S. spillover not expected

CNBC reported that the generics are only available in Canada and not the United States, and that some analysts do not expect the impact of the new Canadian generics to spill over into the U.S. market [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html]. The outlet noted that Ozempic sales in the U.S. may still be pressured by other factors, including competition with Eli Lilly's Mounjaro [Source: cnbc.com/2026/05/07/healthy-returns-novo-nordisk-faces-ozempic-generics-in-canada-.html].

Canadian launch timing and pricing structure

Catherine Thomas, Apotex's vice president of global communications, told CBC News in an email that the company's product should be available to Canadians within weeks, and that the company is working with health insurance companies on coverage [Source: cbc.ca/news/health/ozempic-semaglutide-generic-version-canada-9.7184915].

CBC, citing the pricing structure of the pan-Canadian Pharmaceutical Alliance, reported the following tiered framework [Source: cbc.ca/news/health/ozempic-semaglutide-generic-version-canada-9.7184915]:

• First generic: 75 to 85 per cent of the brand-name price.
• Second generic on the market: price for both drops to 50 per cent.
• Three or more generics: cost decreases to about 35 per cent of brand-name Ozempic's price.

CBC reported that, depending on the dose, people without drug coverage can pay about $300 to $400 per month, sometimes even more, for the brand-name product [Source: cbc.ca/news/health/ozempic-semaglutide-generic-version-canada-9.7184915]. Current cash prices listed on GLP1Prices.ca for Ozempic range from approximately $222 to $663 CAD, depending on pharmacy, dose and quantity. Pricing for Rybelsus, Zepbound and other GLP-1 products is tracked separately on our generic semaglutide tracker and insurance coverage checker; see the FAQ for further details.

This article is for informational purposes only and does not constitute medical advice.