In Canada, semaglutide - the active ingredient in Ozempic and Wegovy - has lost patent protection years before expected. While the expiry of data exclusivity in January 2026 was anticipated, the earlier lapse of the semaglutide patent through non-payment of a small maintenance fee raised eyebrows. Novo Nordisk now clarifies this was not an oversight, but a deliberate strategic choice.

Nordisk has rejected any suggestion that the loss of its Canadian semaglutide patent was a simple mistake. In a statement cited by Fortune, the company stressed that its intellectual property strategy is “carefully considered at a global level,” indicating intentionality rather than a blunder.

Legal analysts believe the decision was deliberate. Steven Shape, IP Chair at Omnus Law, noted that the annual $250–$450 fee was negligible compared to the looming expiration of both data exclusivity and patent protection in January 2026. Shape argued the lapse was likely “a clear decision by Novo,” not an error.

That interpretation is bolstered by the company’s simultaneous filing of a Certificate of Supplementary Protection (CSP) in Canada, suggesting Novo valued extended market exclusivity beyond the patent’s life. But because the underlying patent lapsed early, the CSP cannot take effect.

Market implications are significant. With data exclusivity and patents set to expire in January 2026, generic manufacturers such as Sandoz and Apotex are positioned to enter the Canadian market at that time. Analysts predict pricing erosion could be steep - potentially 50–80% lower than current brand prices once generics launch.

The loss of exclusivity may also prompt policy shifts. Legal observers point to the possibility of U.S. states leveraging Canada’s situation under Section 804 importation to secure lower-priced generics.