Canada has become the first G7 country to approve a generic version of semaglutide, the active ingredient in Ozempic and Wegovy. The reason was not a scientific breakthrough, but an administrative oversight by Novo Nordisk, which stopped paying the patent maintenance fee since 2019, causing its early expiration in January.
Generic production and its market impact 💊
The generic, developed by Dr. Reddy's Laboratories, will cost about 100 Canadian dollars per month. This figure contrasts with the 200-350 dollars that Wegovy costs without insurance in North America. Production is based on the same molecule, but without the patented extended-release processes. Novo Nordisk's error opens a legal door for other manufacturers to compete, although initial supply will be limited.
The maintenance fee worth millions 💸
It turns out that forgetting to pay an annual fee can cost more than buying health insurance. Novo Nordisk let its patent expire by failing to pay an administrative fee. Now, while executives look for the person responsible for the oversight, Canadian patients celebrate. Who would have thought that the trick to lowering the price of semaglutide was not a laboratory, but a distracted accountant.