I came across the news that “semaglutide now becomes cheaper”. I researched about it and found out that:
Semaglutide is GLP-1 receptor agonist and helps to regulate the blood sugar levels in the body as well as it reduces appetite. Due to this, it has become one of the most sought after therapies.
The patent for Semaglutide (a hypoglycemic agent) expired on March 2026, following which, many companies started their manufacture of Semaglutide. It is said that around 50+ companies are expected to launch their generic Semaglutide. This would make the diabetes treatment and management more accessible to the patients.
But why would the same drug cost more and after a few years cost less?
What is a generic drug and an innovator drug?
Innovator drugs are the newly created drugs that undergo extensive research and are formulated in such a way that no other like it exists.
While generic drugs are those drugs that are similar to innovator drugs in strength, dosage form, route of administration, quality, performance characteristics and intended use. These generic drugs are “bioequivalent” to the innovator drug. This means that it performs in the same manner as the innovator drug.
Patent requirements:
The innovator drugs have a patent that often lasts upto 20 years. The generic drugs can only be manufactured and distributed once the patent of innovator drug has expired.
Cost:
Since innovator drugs undergo extensive researches, formulation, development and clinical testings, it is usually priced at a higher rate.
Generic drugs do not need to undergo any pre-clinical or clinical research. The manufacturers of the generic drug just need to submit the chemistry, manufacturing, controls, labelling, testing and bioequivalence data of the drug. Due to these reasons, generic drug prices are comparatively lower.
Talking about Semaglutide, roughly 50% price difference is expected. This makes the drug accessible to a wider range of population. This proves to be benificial; especially, when obesity and diabetes cases are increasing rapidly.
Innovator drugs are approved by an NDA application while generic drugs are approved by an ANDA application.
Among so many manufacturers for the Semaglutide generic drug, the market will majorly have only 3-4 companies’ product. Why does it happen and how will it impact the patient?
MBH/AS