Generic Semaglutide Starts at 75% of List Price Under pCPA Rules

Generic semaglutide entering the Canadian market will begin at 75% of the brand-name list price under the pan-Canadian Pharmaceutical Alliance framework, with the price falling to 35% once three or more manufacturers are approved [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

How the pCPA tiers work

Health Canada issued a notice of compliance on April 28, 2026 to Dr. Reddy's Laboratories for an injectable generic version of semaglutide, the active ingredient in Ozempic and Wegovy [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada]. Generic pricing in Canada is set through a framework agreed to by the industry and public health plans via the pan-Canadian Pharmaceutical Alliance [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

According to The Globe and Mail, the framework suggests:

• The price of generic semaglutide will start at 75% of the list price of Ozempic while only one manufacturer is approved [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].
• The price will eventually drop to 35% once three or more companies are on the market [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

List price benchmark

The current list price of Ozempic is $228 for a four-week supply, not including pharmacy and distributor markups [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada]. That figure is the reference point against which pCPA tiers are calculated. Current pharmacy retail prices on GLP1Prices.ca for Ozempic range from $200 to $663 CAD across listed Canadian pharmacies, reflecting the markups not included in the manufacturer list price.

Health Canada noted in its news release that many generic medications in Canada are 45% to 90% cheaper than brand-name versions [Source: canada.ca/en/health-canada/news/2026/04/canada-becomes-the-first-g7-country-to-approve-a-generic-version-of-semaglutide.html]. Reuters reported the same 45% to 90% range for Canadian generics [Source: reuters.com/legal/litigation/health-canada-approves-first-generic-version-novo-nordisks-ozempic-2026-04-28].

How many more approvals are needed

To reach the 35% tier, two additional generic semaglutide approvals are required beyond Dr. Reddy's. Health Canada said it is currently reviewing eight other submissions for generic semaglutide by different companies, with regulatory decisions expected in the coming weeks and months [Source: canada.ca/en/health-canada/news/2026/04/canada-becomes-the-first-g7-country-to-approve-a-generic-version-of-semaglutide.html].

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

Dr. Reddy's commits to Canadian supply

Dr. Reddy's chief executive officer, Erez Israeli, said in a news release that the company is committed to manufacturing a consistent supply of the drug for Canadian patients, adding that "Canada remains a priority market for us" [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

Dr. Reddy's filed its application in February 2024, records show [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada]. Health Canada has a target timeline of reviewing generic drugs within 180 days of submission, but it does not count the time taken between when an examiner requests information and the manufacturer provides it [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada]. Health Canada said it completed its review of Dr. Reddy's submission within 180 days by its method of counting [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

Market context

Ozempic recorded $2.9 billion in Canadian sales in 2025, more than three times the next best-selling drug, according to aggregated prescription data from IQVIA Canada [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada]. More than a million Canadians currently take semaglutide [Source: theglobeandmail.com/business/economy/article-generic-ozempic-glp1-approved-health-canada].

BMO Capital Markets analyst Evan Seigerman told Reuters investors will follow the evolution of the market in Canada 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]. Eli Lilly's tirzepatide products Mounjaro and Zepbound continue to gain market share, eroding Novo Nordisk's 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].

Patients tracking pricing developments can monitor approvals via the generic semaglutide tracker, review plan rules with the insurance coverage checker, or consult the FAQ for further details on Canadian regulatory status.

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