The health tech revolution is upon us! U.S. telehealth platform Hims & Hers Health Inc. has announced it will roll out generic versions of the highly sought-after weight-loss and diabetes medications, Ozempic and Wegovy, in Canada as soon as the new year kicks off.

This marks a seismic shift as Hims & Hers becomes one of the first firms to capitalize on the impending expiration of patents on these blockbuster drugs, which come due in January. The generic versions, made from semaglutide—the powerful ingredient in Ozempic—will be available at a fraction of the price, just as demand for these life-changing medications continues to skyrocket.

In fact, Ozempic is currently Canada’s bestselling drug, racking up over $2.5 billion in sales at pharmacies in 2024, according to industry data from IQVIA. To put this into perspective, no other drug even crossed the billion-dollar mark last year!

Hims & Hers is teaming up with another manufacturer to produce these generics, offering consumer-friendly 24/7 access to licensed healthcare providers through its digital health platform. While the partner company hasn't been publicly disclosed, several firms, including Apotex Inc. and Sandoz Canada Inc., are already poised to enter the market with Health Canada's approval.

Once the patent for Ozempic expires on January 4, Canada will be the world's first major market to unleash these generic versions. This milestone will allow multiple manufacturers to create the medication, leading to significantly lower prices under Canada's drug pricing framework. With competitive pricing agreements, if four or more generic manufacturers release their versions, the price could drop to just 35% of the brand-name cost.

Currently, a four-week supply of Ozempic is priced at around $223, suggesting generics could be marketed for approximately $78 before extra fees. And brace yourself—these lower costs are expected to further amplify product demand!

Novo Nordisk, the Danish pharmaceutical giant behind Ozempic, is escalating in value with reported revenues soaring to $62 billion in 2024—more than double what it was three years earlier. Meanwhile, Hims & Hers, which trades on the New York Stock Exchange, saw first-quarter revenues hit an impressive $586 million, of which $230 million stemmed from semaglutide sales alone.

However, it’s not all smooth sailing. Last month, Novo Nordisk declared they would cease supplying Hims & Hers with Wegovy, citing concerns over Hims & Hers selling 'knock-off compounded versions' instead of the authentic medication. This fiasco emerged amidst shortages of the branded drug, which the FDA announced was resolved in April.

As the competition heats up, Eli Lilly has also entered the arena with its new weight-loss drug, orforglipron, showing promise in trials that rivaled Ozempic in effectiveness for diabetes management. Expected regulatory approval may arrive by year’s end.

In summary, the entry of generic Ozempic and Wegovy in Canada stands to disrupt the pharmaceutical landscape and provide greater access to essential health solutions at more affordable prices. Stay tuned as this thrilling saga unfolds!