The stock price of Novo Nordisk has continued to fall after the company lost patent protection for its drug Ozempic in Canada. This loss is attributed to an administrative error, where Novo Nordisk failed to make a small payment necessary to maintain the patent protection.
Background
Ozempic, which contains the active ingredient Semaglutide, is a blockbuster drug from Novo Nordisk for the treatment of diabetes and weight loss. Patent protection for this drug has been lost in Canada due to a clerical mistake. According to the Canadian Patent Office, the last payment necessary to maintain the patent protection was made in 2018. Thereafter, the payment was not renewed, despite a deadline for retroactive payment.
Implications
The loss of patent protection in Canada could result in significant revenue losses for Novo Nordisk. Canada is the second largest market for Semaglutide worldwide, and without patent protection, generic manufacturers like Sandoz may soon enter the market. Sandoz CEO Richard Saynor has already announced that his company plans to market a generic GLP-1 drug in Canada and Brazil as soon as the data exclusivity period expires.
Reactions
The news of the loss of patent protection has led to speculation about whether it was a mistake or a deliberate decision. Novo Nordisk has yet to comment in detail on the reasons behind it. However, the loss of patent protection could have long-term impacts on the company’s revenues, particularly in a market known for its strict price regulations.
Outlook
In the coming years, generic versions of Ozempic are expected to enter the Canadian market. This could increase competition in the market and lower prices for Semaglutide products. For Novo Nordisk, this means it will need to focus on other markets or products to offset the loss of revenue.