Health Canada approves generic GLP-1

July 16, 2026

Generic semaglutide received approval in Canada as of late April and early May 2026, providing your plan members with type 2 diabetes a more affordable generic alternative to Ozempic. This can help reduce their out-of-pocket costs and costs to your drug plan.

What’s changing

  • Generic drug approval and availability

Drug availability may vary by province. Provinces have different timelines for when pharmacists can substitute the generic for the brand name drug. We are closely monitoring the provincial landscape and availability of generics.

  • How generic substitution works

Sun Life will apply generic substitution to claims for Ozempic once generics are widely available and pharmacists can substitute the generic for the brand name drug. Claims will be paid in the following manner:

  • Mandatory generic substitution: Lowest-cost alternative is covered in full. If medically necessary, plan members can request a Drug Exception to cover the brand name drug.
  • Simple generic substitution: Lowest-cost alternative is covered in full. If the health practitioner writes “do not substitute,” the brand name drug is covered in full.
  • No generic substitution: Brand-name drugs are covered in full.

What plan members need to know

  • Sun Life will continue to require Prior Authorization for Ozempic and its generic versions.
  • Approval criteria remain the same.
  • Plan members already approved for Ozempic automatically get access to generic versions.
  • Plan members are encouraged to talk to their doctor or pharmacist about switching to the generic alternative.
  • For plans with generic substitution, claims will be paid up to the cost of the generic alternative once the generics are widely available and pharmacists can substitute a generic for the brand name drug.

We’ll send out a communication to plan members using Ozempic on July 21 to let them know of this change. Please note this communication applies only to Ozempic for type 2 diabetes treatment, not to obesity drugs like Wegovy.

New in obesity treatment

Sevmia, a generic version of Wegovy for chronic weight management, was approved by Health Canada on June 29, 2026. We’re monitoring for when it becomes available, as it may offer a new generic GLP-1 treatment option for obesity. Note that obesity coverage is an optional benefit at Sun Life that Clients can choose to add to their drug plan.

Questions? We’re here to help.

If you have fewer than 50 employees, please contact your Client Service Specialist at 1-877-786-7227.

If you have more than 50 employees, please contact your Sun Life Group Benefits representative.