pCPA Tiered Pricing: How Generic Semaglutide Prices Will Fall

Under the pan-Canadian Pharmaceutical Alliance (pCPA) pricing structure, the first generic semaglutide product on the Canadian market could be priced at 75 to 85 per cent of the brand-name price, dropping to 50 per cent once a second product enters, and to about 35 per cent once three or more generics are available.

How the tiers work

Mina Tadrous, a pharmaceutical policy expert at the University of Toronto, described the pCPA tiered structure that will govern how quickly Canadians see cheaper alternatives to Ozempic. According to Tadrous, the first generic entrant is typically priced at 75 to 85 per cent of the brand-name cost. Once a second generic enters the market, the price for both drops to 50 per cent of brand. When three or more generics are available, the price falls further to about 35 per cent of the brand-name cost.

Where Canada stands today

Health Canada authorized the first generic semaglutide injection, from Dr. Reddy's Laboratories, on April 28, 2026, making Canada the first G7 country to approve a generic version of the molecule. A second generic semaglutide injection, filed by Canadian-based Apotex, was authorized shortly afterward.

Health Canada has stated it is currently reviewing seven other submissions for generic semaglutide from different companies, with regulatory decisions expected in the coming weeks and months. The department maintains a public list of these files on its Submissions Under Review page.

What the numbers imply for Canadian pricing

Applied to current Canadian pharmacy prices tracked on GLP1Prices.ca, the pCPA tiers translate into meaningful step-downs:

• First generic (75-85% of brand): With Ozempic pricing in our database ranging from CAD $86.40 to $663, a first-generic tier would price a generic version at roughly the same-to-modestly-lower range as brand.
• Second generic (50% of brand): Both brand and generic would be repriced at half of brand.
• Three or more generics (~35% of brand): The steepest reduction, reached only once the market has multiple approved entrants.

Health Canada has separately noted that many generic medications in Canada are 45 to 90 per cent cheaper than their brand-name counterparts, a broader industry statistic that reinforces the pCPA-specific tiers.

Timing depends on the review queue

The pace at which Canadians reach the second and third pricing tiers depends on how many of the pending submissions clear Health Canada review. Sandoz Canada general manager Michel Robidoux told The Globe and Mail that the road to approval has been longer than expected, and that the industry is not expecting generic semaglutide to have a major place in the Canadian market until mid-2026.

Health Canada's target of responding to generic drug submissions within 180 days was met 84 per cent of the time in the fiscal year that ended March 31, according to reporting by The Globe and Mail. The Canadian Generic Pharmaceutical Association has reported that more than 500 generic submissions were under review, of which more than 100 were backlogged.

Related coverage

Readers tracking related approvals can review our generic semaglutide tracker, the insurance coverage checker, and pages for Wegovy, Rybelsus, Mounjaro, and Zepbound. Additional background is available in our FAQ.

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

Sources

• Health Canada approves country's 1st generic version of ...
• Canada approves second generic semaglutide, the first G7 ...
• Generic submissions under review
• Health Canada approval backlog expected to push back ...