The current developments surrounding the Novo Nordisk stock and the patent protection for Ozempic in Canada serve as a lesson about the significance of patent management and due diligence in the pharmaceutical sector.
Background: What Happened?
Novo Nordisk, the Danish pharmaceutical company, lost patent protection for its blockbuster drug Ozempic (active ingredient Semaglutide) in Canada due to an administrative error. The reason: the company failed to pay a relatively small annual fee of 450 Canadian dollars to maintain the patent. After several reminders and a one-year grace period, the patent was eventually classified as ‘expired’ and cannot be revived.
Consequences for Novo Nordisk
- Loss of Patent Protection: Without a valid patent, generic manufacturers like Sandoz can begin to introduce their own versions of Semaglutide into the Canadian market as early as 2026.
- Financial Implications: Canada is considered the second-largest market worldwide for Semaglutide. The loss of exclusivity is expected to cost Novo Nordisk billions in revenue—especially since the Canadian market is also attractive for US consumers seeking cheaper medication from abroad.
- Stock Price Development: The news of the loss of patent protection has shaken investor confidence and is reflected in the decline of Novo Nordisk’s stock price.
Details on the Process
According to publicly available documents from the Canadian patent registry (Patent number CA-2601784), the last annual fee was paid in 2018. There were several reminders and refund requests from Novo Nordisk’s lawyers—apparently to buy time or to assess whether further payment was worthwhile. Ultimately, even after a one-year period, the payment was not made; the patent expired permanently.
“Once a patent has lapsed it cannot be revived.”
— Canadian Patent Office as reported in Science.org blog post
Market Dynamics
Canada is considered particularly interesting by industry experts like Richard Saynor (CEO of Sandoz) due to its role as the second-largest market for Semaglutide worldwide—not due to a disproportionately large population but because of the active cross-border trade in prescription medications between Canada and the USA (especially insulin). This could lead generic manufacturers to market their products to US customers as well.
Conclusion
The failure to pay a small fee has far-reaching consequences: Novo Nordisk loses its exclusive protection in a significant sales market. Competition can now bring generic versions to market sooner than planned, resulting in substantial revenue losses. The stock reacts sensitively to this development.