Dr Reddy's Wins Nod to Sell Generic Ozempic, Check Cost Of Weight-Loss Drug

Indian pharma major Dr Reddy's Laboratories has received regulatory approval from Health Canada to sell the first generic version of Novo Nordisk's blockbuster diabetes-cum-weight-loss drug Ozempic (semaglutide).

Health Canada said it authorised a semaglutide injection developed by Dr Reddy's after a full review of safety, efficacy and quality. The approval covers the same once-weekly treatment for Type-2 diabetes as the branded Ozempic. Follow Markets Live Update 

Canada becomes the first G7 country to clear a generic semaglutide product, marking a milestone in efforts to make GLP-1 therapies affordable.  The generic launch comes after patent protections on semaglutide expired earlier this year in Canada, opening the door for competition. Analysts say this is a key test case for how generics might challenge branded peptides.  

Dr Reddy's is expected to supply millions of doses once commercialised. Following the approval, Dr Reddy's stock came in focus. At the time of publishing this report, Dr Reddy's stock was trading at Rs 1,339.90, down by 0.8 per cent. The move follows earlier generic approvals in India and other emerging markets. 

Fierce Price War Brewing Over Ozempic Generics

The entry of Dr Reddy's generic is triggering a price battle among pharmaceutical companies worldwide.  

In Canada, generic semaglutide prices are expected to be 45-90 per cent cheaper than the original Ozempic, according to Health Canada norms. More generic applications are under review, suggesting a crowded market ahead.  

Globally, several drugmakers are racing to offer lower-cost versions of semaglutide and other GLP-1 therapies. Analysts expect some generics in certain markets to drive costs down to $14 (about Rs 1,323) per month in competitive scenarios.  

In India, the generic launch has already sparked intense competition: multiple players like Natco, Alkem and others are selling their versions of semaglutide at highly discounted rates.  

Natco Pharma's generic has hit the market at around Rs 1,290 per month, undercutting higher priced options. Meanwhile, Alkem Laboratories is pushing weekly priced offerings that translate to about Rs 450 per week -- a strategy to attract price-sensitive consumers.  

Industry insiders say this signals the start of a price war in the GLP-1 segment, with companies jockeying for market share through affordability. New entrants are expected to keep pushing prices lower to attract patients and insurers.

Consumer Impact Of Generic Ozempic

If generic semaglutide becomes widely affordable, the healthcare and weight-loss drug markets could shift dramatically.

For patients, cheaper generics mean much lower out-of-pocket costs for diabetes management and off-label weight-loss use. Ozempic and similar GLP-1 drugs have traditionally cost hundreds of dollars a month in markets like Canada and the US, often limiting access for many.  

More affordable pricing could expand treatment access beyond affluent patients, reaching those with diabetes, obesity and metabolic disorders who previously could not afford branded therapies. This could also reduce long-term health complications by improving adherence and earlier treatment.  

Clinics and pharmacies in India may see a surge in demand, especially if prices fall significantly with multiple generics on the shelf. 

At the same time, experts caution that while affordability improves access, appropriate medical supervision and patient education will be crucial to ensure safe and effective use, especially for weight-loss indications.

"Ozempic is a powerful metabolic tool, but like all medications it works best when prescribed thoughtfully, monitored carefully  and combined with sustainable lifestyle changes," said Dr Soma Srinivas, Consultant Endocrinologist, Gleneagles Hospital - part of the Fortis Healthcare Network Hospital.

When asked about any possible side effects, Dr Soma adds, "The most common side effects are nausea, vomiting, diarrhoea, constipation, and acid reflux. These are typically dose-dependent and improve over time. More significant concerns include pancreatitis, gallbladder disease, and a possible risk of thyroid C-cell tumours seen in animal studies, though this remains unconfirmed in humans. Rapid weight loss on Ozempic can also cause muscle loss and the cosmetic phenomenon now colloquially dubbed "Ozempic face"  facial fat loss causing a gaunt appearance."