Q&A: Dr. Reddy's CEO on Generic Semaglutide and the GLP-1 Market Ahead

Canada became the first G7 country to authorize a generic semaglutide injection when Health Canada issued a Notice of Compliance to Dr. Reddy's Laboratories in April. The company launched commercially on May 15, indicated for once-weekly subcutaneous use in adults with type 2 diabetes, supplied in pre-filled pens at 2 mg and 4 mg strengths.¹

With patent challenges to branded GLP-1 products advancing across multiple jurisdictions and demand for affordable obesity and diabetes therapies continuing to grow, the generic entry raises practical questions for the broader GLP-1 commercial ecosystem: how payers and pharmacies will respond, whether vertical integration in peptide manufacturing translates to supply and cost advantages, and how early regulatory wins in one market inform strategy in others.

It is estimated 589 million adults are currently living with diabetes worldwide — a number projected to reach 853 million by 2050 — underscoring the scale of the patient population these therapies stand to reach.² Dr. Reddy's foothold in Canada could serve as a regulatory and commercial roadmap for subsequent G7 market entries, where demand for affordable GLP-1 therapies persists.

To unpack these commercial implications, Pharmaceutical Commerce spoke with Dr. Reddy’s Laboratories CEO Erez Israeli.

PC: What impact could generic semaglutide have on patient access to GLP-1 therapies?

Israeli: Generic semaglutide has the potential to significantly enhance access to GLP-1 therapies by improving both accessibility and affordability. More cost-effective options can enable a broader patient population to benefit from these treatments for diabetes management. At Dr. Reddy’s, we believe that introducing high-quality generics can play a key role in expanding access to these important therapies. Our launch of generic Semaglutide injection in Canada aligns with our broader commitment to improving access to innovative medicines globally. We also believe that generic Semaglutide could play a meaningful role in expanding equitable access to care, contributing to better health outcomes for patients at scale.

Dr. Reddy’s described Canada as a “priority market.” What makes Canada strategically important in the company’s GLP-1 commercialization strategy?

Canada represents an important market for our GLP-1 portfolio due to a strong demand, a well-established healthcare system, and a clear emphasis on value-driven access to innovative therapies. With a growing prevalence of diabetes, there is a significant and expanding need for GLP-1 treatments across the country. Our launch of generic semaglutide will enable us to address the unmet patient needs. Building on our long-standing presence in Canada and well-established market access, we remain committed to expanding access to innovative, high-quality, and affordable GLP-1 treatments for individuals living with diabetes.

How do you expect payers and pharmacies to respond to generic GLP-1 entry?

As part of the healthcare ecosystem, we believe that the payers and pharmacies will support and encourage the entry of generics GLP-1 therapies in Canada, benefiting many patients.

Why is vertical integration becoming important for commercialization success in complex injectable generics and peptide-based medicines?

The launch of the generic semaglutide reflects our decade-long journey into peptide-based therapeutics, supported by strong in-house capabilities in both API manufacturing and formulation development. These therapies are inherently complex, requiring high levels of manufacturing precision, quality control, and regulatory compliance. By integrating both API and formulation development in-house, we are able to maintain greater control across the entire value chain from development through to commercialization, while ensuring a reliable and consistent supply of this important therapy for patients in Canada.

References

1. Dr. Reddy's Laboratories launches its generic semaglutide injection in Canada. Press release. Dr. Reddy's Laboratories Ltd. May 15, 2026. https://www.drreddys.com/cms/sites/default/files/2026-05/Semaglutide.pdf
2. International Diabetes Federation. IDF Diabetes Atlas, 11th Edition. International Diabetes Federation; 2025. Accessed June 2, 2026. https://diabetesatlas.org