Health Canada has approved the first generic versions of Novo Nordisk's diabetes drug Ozempic, with Indian drugmaker Dr. Reddy's Laboratories and Canadian firm Apotex being the first to receive clearance. This marks a significant development as these generics are currently only available in Canada, despite other generic versions being accessible in India.
Analysts, including Evan Seigerman from BMO Capital Markets, suggest that the introduction of these generics could lead to a decline in international revenue for semaglutide, the active ingredient in both Ozempic and Novo's obesity drug Wegovy.
However, there is skepticism about whether this will affect the U.S. market, as competition from Eli Lilly's Mounjaro may pose a more immediate threat to Ozempic's sales.
Novo Nordisk's executive vice president, Emil Kongshøj Larsen, indicated that the company anticipates only a low single-digit impact from the generics, emphasizing their strategy involving a savings card that has gained traction among consumers. Notably, Canadian policy stipulates that once three generics are available, Novo's list price must be reduced by 65%.
Larsen expressed confidence in navigating this competitive landscape, particularly with the savings card initiative. The market will be closely monitored for the entry of additional generics and their effects on pricing and revenue for Novo Nordisk's products