BMO Analyst: Canada Is 'Test Case' for Generic GLP-1 Competition

BMO Capital Markets analyst Evan Seigerman told Reuters that investors will follow the evolution of the Canadian market closely as a test case to see if and how generics can compete with branded peptides [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/].

Canada moves first among G7 economies

Health Canada authorized the first generic semaglutide injection on April 28, 2026, making Canada the first G7 country to clear 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]. The first authorization went to Dr. Reddy's Laboratories as a generic of Ozempic, indicated for the once-weekly treatment of adult patients with type 2 diabetes to manage blood sugar levels [Source: canada.ca/en/health-canada/news/2026/04/canada-becomes-the-first-g7-country-to-approve-a-generic-version-of-semaglutide.html].

On May 1, 2026, Health Canada authorized a second generic semaglutide injection, filed by Canadian-based Apotex, and stated that seven other submissions from different companies remained under review [Source: canada.ca/en/health-canada/news/2026/05/canada-approves-second-generic-semaglutide-the-first-g7-country-to-do-so.html]. The department said it expects to make regulatory decisions on more of these submissions 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].

Why investors are watching Canada

Reuters reported that several drugmakers have been developing lower-cost versions of Novo Nordisk's Ozempic, driving down monthly prices for some users [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/]. Seigerman added that Canadian generic entry is likely to remain a localized headwind, and that strong U.S. intellectual property protections should prevent meaningful spillover, even as Ozempic faces growing competition from drugs such as Mounjaro [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/].

Reuters also noted that Novo Nordisk is facing mounting sales pressure as Eli Lilly's GLP-1 products Mounjaro and Zepbound continue to gain market share, eroding the Danish drugmaker's early first-mover advantage in the GLP-1 market [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/].

Sandoz timing and the next wave

Swiss generic drugmaker Sandoz has said it plans to launch a generic version of Ozempic in Canada by June, positioning itself among the first wave of companies seeking to market copycat versions of the GLP-1 therapy [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/]. The company said in November that it expected to be an early entrant in the space [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/].

Reuters reported that in Canada many generic medications are 45% to 90% cheaper than the brand-name versions [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28/]. The CBC reported that a monthly supply of Ozempic or Wegovy costs between $300 and $400, sometimes more depending on the dose [Source: cbc.ca/news/health/ozempic-generic-health-canada-9.7180566]. That figure sits within the current pharmacy ranges tracked on GLP1Prices.ca, where retail Ozempic listings run between roughly $222 and $663 CAD per month.

What comes next

Mina Tadrous, an associate professor at the University of Toronto who researches drug policy, told CBC that in order to see big cost savings another two generic drugs need to be approved, and that with three generics on the market the price could drop to about $100 or less depending on dose [Source: cbc.ca/news/health/ozempic-generic-health-canada-9.7180566]. CBC also reported it is unclear when Dr. Reddy's generic will hit the market [Source: cbc.ca/news/health/ozempic-generic-health-canada-9.7180566].

• First generic authorized: Dr. Reddy's, April 28, 2026 [Source: canada.ca/en/health-canada/news/2026/04/canada-becomes-the-first-g7-country-to-approve-a-generic-version-of-semaglutide.html]
• Second generic authorized: Apotex, 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]
• Pending semaglutide submissions: seven [Source: canada.ca/en/health-canada/news/2026/05/canada-approves-second-generic-semaglutide-the-first-g7-country-to-do-so.html]

Readers can follow approvals via our generic semaglutide tracker, check plan status with our insurance coverage checker, or review common questions in our FAQ.

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