Novo’s Ozempic copy 15% cheaper, but Discovery still won’t change its position

Danish pharmaceutical manufacturer Novo Nordisk will launch its copy of its diabetes treatment Ozempic in South Africa at a 15% discount to the original product, it confirmed on Thursday.

It will be the first registered alternative to Ozempic available to consumers, as only one generic rival has so far been approved by South Africa’s medicines authority, and it has yet to hit the market.

The scale of the price drop is likely to disappoint many patients, as it does not appear large enough to prompt medical schemes to expand coverage.

Medical scheme administrator Discovery Health, which typically leads the industry on decisions about coverage for costly new treatments, said there are no immediate plans to change the eligibility criteria for members of its biggest client, Discovery Health Medical Scheme (DHMS).

“DHMS regularly reviews its funding position on GLP-1 medicines as clinical evidence evolves and lower-cost alternatives become available. While a 15% reduction in price is a positive development and may improve affordability for some individuals, it is unlikely to be sufficient to justify broader medical scheme funding at this stage due to the high prevalence of Type 2 diabetes,” said Discovery Health chief clinical officer Noluthando Nematswerani.

“It will, however, assist with reducing member out-of-pocket expenses where cover is currently not provided,” she said.

Novo Nordisk announced last week that it would launch the copy, branded Extensior, on July 31. Communication to industry seen by Business Day indicates the private sector price of Extensior will be 15% lower than the current single exit price (SEP) of Ozempic.

The SEP is the regulated price that pharmaceutical manufacturers charge for private sector sales and is the same for all customers, regardless of the volumes they purchase.

Ozempic and Extensior contain the GLP-1 medicine semaglutide, which comes off patent in many countries this year, including South Africa. While Ozempic is registered as a diabetes treatment, it is often prescribed “off label” for weight management.

The SEP for a 1.5ml pen of Extensior will be R1,222.10, while that of a 3ml pen with a stronger dosage will be R2,444.23, according to information provided to industry. The equivalent Ozempic products cost R1,437.78 and R2,875.56, respectively. Each pen provides four weekly shots, and all prices include VAT.

Novo Nordisk’s GM for South Africa, Sara Norcross, defended the company’s pricing strategy, saying: “If you look at our semaglutide prices over the last year, prices have come down, and as more options enter the market, the prices will decrease even further.

“We will continue to assess pricing, as our goal is to improve access by providing patients and healthcare practitioners with an additional treatment option without compromise by maintaining high quality, manufacturing and safety standards,” she said.

Novo Nordisk is in talks with medical schemes about access to semaglutide, she said.

“Beyond the medical aid schemes, one of our goals is looking at how to increase access in the public sector as well,” she said.

Reuters reported earlier this week that the South African Health Products Regulatory Authority (Sahpra) has approved a generic semaglutide made by India’s Sun Pharmaceuticals and is reviewing a further 12 applications from other companies.

Business Day