Sandoz Report: Faster Generic Drug Approvals Could Save Canadian Insurers $94 Billion
A Sandoz Group report estimates that more than 300 drugs will lose patent protection in Canada over the next decade. Prompt approval of generic versions could save insurance plans $94 billion, but a doubled backlog at Health Canada is delaying market access.
More than 300 drugs are set to lose patent protection in Canada over the next decade, creating an opportunity for significant healthcare cost reductions if generic alternatives reach patients quickly. According to a report by Sandoz Group, public and private payers would spend $183 billion on these medications without generic options. If cheaper off-patent drugs were promptly available, those costs would drop to $89 billion, generating an estimated $94 billion in savings for insurance plans.
Realizing those savings depends on timely regulatory approvals, yet the backlog of generic submissions at Health Canada has doubled over the past year. In the 2025-26 fiscal year, Health Canada met its target of assessing submissions within 180 days only 72 per cent of the time. The fee for the most common type of generic submission to the regulator is approximately $71,950 this year.
The year 2026 is identified as the single biggest year for new generics becoming available, largely because market protections for the diabetes and weight-loss drug Ozempic are expiring. Patent protections for Ozempic expired on Jan. 4, but Health Canada did not approve the first generic version until April 28. Sandoz applied to produce generic semaglutide in late 2024 and received its first approval in September. Meanwhile, generic semaglutide manufactured at a Canadian facility is currently being shipped to Brazil, which prioritized its regulatory review ahead of Canada.
Generics and biosimilars already play a major role in the Canadian pharmaceutical market. In 2025, they accounted for nearly 80 per cent of prescriptions filled in the country while representing only a quarter of total prescription drug spending.
To address regulatory bottlenecks, Sandoz recommends improving assessment timelines and expanding reliance orders for generics. The company also points to provincial initiatives as a model, noting that British Columbia saved more than $730 million over five years through its biosimilar-switching program.