The $250 Fee: How a Lapsed Patent Opened Canada's Generic Market

Canada became the first G7 nation to authorize a generic version of semaglutide after Novo Nordisk stopped paying a $C250 annual patent maintenance fee starting in 2018, according to reporting by The BMJ.

A $250 fee at the centre of the story

Health Canada has now authorized two generic semaglutide injection products, one from India-based Dr Reddy's Laboratories and one from Canadian manufacturer Apotex, with seven other applications still under review. The Dr Reddy's generic became available in Canada on 15 May 2026, while Apotex has not yet announced a release date.

The approvals were made possible by two overlapping events: Novo Nordisk's Canadian patent for semaglutide lapsed after the company stopped paying the $C250 annual maintenance fee in 2018, and a separate regulatory approval requirement expired on 5 January 2026. Both had to occur before competitors could file generic submissions.

Why the fee went unpaid remains unclear

Novo Nordisk has not publicly explained the lapse, telling The BMJ only that "all intellectual property decisions are carefully considered at the global level". Mina Tadrous, a pharmacist and drug policy researcher at the University of Toronto, told The BMJ the non-payment may have been "a strategy on their part," noting the decision was made before the full commercial boom of semaglutide products.

Novo Nordisk earned roughly $US29bn from semaglutide products in 2024, of which $17.5bn came from Ozempic alone. The company has told the BBC that the Canadian situation is "a localized situation based on our specific patent timelines and regulatory environment and does not reflect the situation in the United States, where exclusivity remains intact".

Tahir Amin, CEO of the Initiative for Medicines, Access & Knowledge, told the BBC that Novo Nordisk's Canadian patent could have been extended until 2028 but was not renewed. "Somebody dropped the ball … that's why you've got generics in Canada sooner," Amin said.

Pricing framework tied to number of entrants

Canadian generic pricing follows a well-established framework tied to the number of manufacturers on the market. Tadrous told CBC News that with a single generic, prices fall to 75% of the brand list price; with two, to 50%; and with three or more, to 35%.

Tadrous estimated to The BMJ that once three generics are on the market, out-of-pocket costs should reach around $C100 per month. Current pharmacy prices tracked on GLP1Prices.ca show brand-name Ozempic ranging from $86.40 to $663 CAD, with Wegovy ranging from $270 to $550 CAD.

Novo Nordisk responds with brand-name campaign

Novo Nordisk is offering brand-name discount cards to cover the cost gap and has launched an advertising campaign in Canada encouraging patients to ask for brand-name Ozempic. Tadrous told The BMJ he expects Novo Nordisk to retain more market share than is typical after generic entry.

The company's global outlook has shifted sharply. Novo Nordisk forecast that 2026 sales would fall between 5% and 13%, ending years of double-digit growth. Its share price fell 17% on the day the guidance was announced. CEO Mike Doustdar described 2026 as reflecting "a year of unprecedented pricing pressure".

What Canadian patients and pharmacists should know

• Two generic semaglutide injections are authorized by Health Canada: Dr Reddy's and Apotex.
• Seven additional generic applications remain under review.
• Novo Nordisk retains patent protection for semaglutide in Europe and Japan until 2033, and in the United States until 2032.
• Eli Lilly's tirzepatide products, Mounjaro and Zepbound, are projected to overtake semaglutide as the leading GLP-1 products within the next few years, per The BMJ.

Readers can compare verified Canadian pharmacy prices on our generic semaglutide tracker and check plan coverage through our insurance coverage checker. Additional background is available in our FAQ.

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

Sources

• Ozempic generic approved in Canada after Novo Nordisk ...
• Why Canadians can now get cheaper generic Ozempic
• Canadians could get more affordable version of Ozempic ...
• Wegovy and Ozempic maker forecasts sharp drop in ...