In a surprising turn of events with major implications for public health and drug affordability, the blockbuster medication semaglutide—better known by its brand names Ozempic and Wegovy—has lost its patent protection in Canada. As of January 4, 2026, generic drug manufacturers are cleared to produce their own versions, potentially making this once-prohibitively expensive treatment far more accessible.
A Deliberate Decision with Major Consequences
The path to this pivotal moment was unusual. Novo Nordisk, the Danish pharmaceutical giant behind the drug, deliberately chose not to pay a $450 maintenance fee to keep its Canadian patent active. The company confirmed this was a strategic decision, not an administrative error, even after receiving a reminder from regulators and having a one-year grace period to pay.
While patent law is complex, the outcome is straightforward. Drug patents in Canada typically last 20 years, though the effective monopoly is shorter due to clinical trial and regulatory approval periods. By allowing the patent to lapse years ahead of schedule in Canada (it remains protected in the U.S. and elsewhere), Novo Nordisk has opened the door for domestic generic production much sooner than anticipated.
Immediate Impact: Lower Prices and Increased Access
The most immediate effect will be a significant reduction in cost. Currently, a dose of Ozempic can cost around $200. Under the pricing rules of the pan-Canadian Pharmaceutical Alliance, when three or more generic versions enter the market, prices for injectable drugs like semaglutide are typically reduced by 65%. This could bring the price per dose down to approximately $70.
This price drop could transform access. Health Canada is currently reviewing nine submissions for generic semaglutide at the dosage used for diabetes treatment. Approvals for the higher doses used for weight management (marketed as Wegovy) are expected to follow. The change means that many of the Canadians who need this medication for diabetes or obesity management but could not afford it may soon have a viable, lower-cost option.
Broader Implications for Public Health and Policy
The timing of this patent lapse is particularly noteworthy against the backdrop of shifting obesity rates. After decades of increase, obesity rates in the United States peaked in 2022 and then decreased by 37% by 2025, a trend many experts link to the arrival of GLP-1 medications like Ozempic. While not the sole factor, these drugs are believed to have played a significant role.
The Canadian price drop raises several critical policy questions. Will cheaper generics convince provincial governments to expand coverage for obesity treatment, rather than restricting public funding primarily to diabetes care? Could this development pressure U.S. legislators to negotiate lower drug prices south of the border? Might it even spur cross-border medical tourism, with Americans seeking more affordable medication in Canada?
The ripple effects of this single corporate decision are likely to be felt across the healthcare system for years to come. As generic versions receive approval and hit pharmacy shelves, the real-world impact on drug affordability, public health outcomes, and even international drug pricing policies will become clear. For now, Canada finds itself in a unique position at the forefront of a significant shift in access to a transformative class of medications.
