Swiss generic drug manufacturer Sandoz plans to launch unbranded weight-loss drugs in Canada at discounts of up to 70% compared to branded versions once patents begin to expire next year, CEO Richard Saynor told the Financial Times. The announcement signals a potential major shift in accessibility for GLP-1 receptor agonist medications that have transformed obesity and diabetes treatment.
Significant Price Reductions Expected
Sandoz is yet to finalize the pricing for its generic weight-loss and diabetes drug semaglutide, but a price cut of "60 or 70 per cent of the list price" was achievable, Saynor told the newspaper. The CEO suggested prices could drop even further as more generic versions become available in the market.
"If you were selling this at $40 or $50 a month, the market could be two or three times bigger in terms of the number of patients," Saynor noted, highlighting the potential for dramatically expanded patient access.
Currently, branded weight-loss and diabetes medications, such as Novo Nordisk's Ozempic and Wegovy, and Eli Lilly's Mounjaro and Zepbound, are priced between $200 and $400 for a one-month supply, according to the Financial Times report.
Market Context and Competition
The move comes as demand for weight-loss and diabetes drugs has surged globally, driven by their effectiveness in managing obesity and diabetes. Novo Nordisk's medications use semaglutide as the active ingredient, while Eli Lilly's medications use tirzepatide.
Sandoz is not alone in preparing for the generic market entry. Last month, a top Biocon executive told Reuters that the biopharmaceutical company aims to launch generic copies of the blockbuster weight-loss drug Wegovy in Canada within the next two years.
Company Clarification
A spokesperson for Sandoz confirmed Saynor's remarks to the Financial Times, but clarified that he was speaking in general terms about typical price reductions for generics once patents expire, and was not indicating specific pricing plans for Sandoz's semaglutide. This suggests the company is still developing its precise market strategy while patents remain in effect.
The anticipated entry of generic versions represents a significant development for patients who have faced high costs and limited access to these highly effective medications for weight management and diabetes control.
