Ozempic maker will lose billions because of this simple blunder
What's the story
Novo Nordisk, the pharmaceutical giant behind Ozempic, is facing a financial setback worth billions due to an unpaid patent maintenance fee of just $250.
The company's oversight in Canada has opened the door for generic versions of its drugs to enter the market starting in 2026.
Science columnist Derek Lowe revealed that while Novo Nordisk had filed a patent for semaglutide (the active ingredient in its weight-loss and diabetes drugs), it did not pay the annual maintenance fee on time.
Refund request
Novo Nordisk's oversight in 2017
Lowe discovered a letter from Novo Nordisk's lawyers requesting a refund for its $250 maintenance fee in 2017.
At the time, the firm was worth more than $350 billion but was unsure about paying this relatively small amount.
In 2019, the Canadian patent office notified Novo Nordisk of the unpaid fee, which had increased to $450 by then.
Impact
Patent's expiration opens doors for generics
Despite a one-year grace period, Novo Nordisk never paid the maintenance fee. This failure has resulted in the patent's expiration, allowing Canadians to access generic versions of its drugs from 2026.
Some estimates suggest this could cost Novo Nordisk billions in profits over the coming years.
The company's troubles come as it struggles to meet soaring demand and faces competition from both Eli Lilly and smaller firms producing compounded weight loss drugs.
Market challenges
Company's stock has plummeted 50% over past year
Novo Nordisk's pipeline of next-generation weight loss drugs has also disappointed investors.
The company's stock has plummeted 50% over the past year. CEO Lars Fruergaard Jorgensen resigned earlier this month.
Despite these challenges, the global weight loss drug market is still projected to reach $139 billion by 2030.