On Jan. 5, Canada will be the first major market where cheaper generic versions of semaglutide – the active ingredient in Ozempic and Wegovy – become legal.

Indian pharma giant Dr. Reddy’s Laboratories Ltd. says Health Canada has rejected its application to make generic semaglutide, a setback for what was poised to be one of the first generic competitors to Ozempic to hit the market in 2026.

Ozempic, made by Danish drugmaker Novo Nordisk NVO-N , is easily the bestselling drug in Canada, earning more than $2.5-billion in sales at retail pharmacies last year, according to IQVIA Canada. It is prescribed to treat diabetes, while a higher-dose version called Wegovy is prescribed for weight loss.

Canada will be the first major market where cheaper generic versions of semaglutide – the act

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