Canada approves second generic Ozempic, slashing diabetes drug costs

Health Canada has approved a second generic version of Ozempic, making Canada the first G-7 nation to authorise generic semaglutide. The medication, produced by Toronto-based Apotex, is designed to treat Type 2 diabetes in adults. Experts expect the new generic options to significantly lower costs compared to the brand-name drug. The generic versions contain the same active ingredient, semaglutide, found in Novo Nordisk’s Ozempic. Initially, the first generic may cost between 75 and 85 per cent of Ozempic’s price. However, competition is set to drive prices down further.

With three or more generic alternatives available, the cost could drop to roughly 35 per cent of the original. Even with just two generics on the market, prices might fall to half of Ozempic’s current rate. The approval follows Canada’s earlier move to greenlight the first generic semaglutide, positioning the country ahead of other major economies.

The arrival of generic semaglutide is expected to make diabetes treatment more affordable for patients. Apotex’s version joins the market as a cheaper alternative, with further price reductions likely as competition grows. Health Canada’s decision marks a key step in expanding access to this widely used medication.