Health Canada has approved the first generic version of brand-name Ozempic.
The department says Canada is the first G7 country to authorize generic semaglutide.
The injectable medication is manufactured by Dr. Reddy’s Laboratories in India and is approved for the once-weekly treatment of Type 2 diabetes in adults.
In a news release, Health Canada says many generic medications are 45 to 90 per cent cheaper than brand-name versions.
Many people without drug coverage have been eagerly waiting for generic semaglutide because Novo Nordisk’s Ozempic can cost hundreds of dollars a month.
Although the medication is approved for diabetes treatment, it is often prescribed off-label for weight loss.
Health Canada says it continues to review eight other generic semaglutide submissions from other companies.
How much cheaper generic semaglutide will be than Ozempic depends on how many generic options are approved and hit the market, said Mina Tadrous, a pharmaceutical policy expert at the University of Toronto.
According to the pricing structure of the pan-Canadian Pharmaceutical Alliance, the first generic medication could cost 75 to 85 per cent of the brand name. Once a second medication enters the market, the price for both drops to 50 per cent. When there are three or more generic products available in Canada, the cost would decrease to about 35 per cent of brand-name Ozempic’s price.