:max_bytes(150000):strip_icc()/GettyImages-2198663639-d8b339f89d7f48bba50fdcf4ca56f835.jpg "Hims & Hers Stock Plunges While Novo Nordisk Gains as Weight-Loss Drug Wars Take New Turn")
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Key Takeaways
- Hims & Hers Health stock sank sharply Monday after the telehealth company said it would stop selling its compounded weight-loss pill.
- Novo Nordisk said it has filed a lawsuit against Hims over its compounded weight-loss drugs.
Hims & Hers Health shares are tumbling after a major blow to its weight-loss lineup.
Shares of the telehealth provider were down 25% Monday morning after Hims & Hers (HIMS) said in a statement over the weekend that it would stop offering its compounded semaglutide pill, just days after launching the product.
The pill was marketed as offering the same active ingredient as Novo Nordisk’s (NVO) Wegovy pill that received approval from the Food and Drug Administration in December, and was swiftly attacked by the Danish drugmaker. Novo Nordisk said Monday that it has filed a lawsuit against Hims & Hers asking a court to “permanently ban Hims from selling unapproved, compounded drugs that infringe our patents,” and is seeking damages. Shares of Novo Nordisk climbed about 4% in recent trading.
Hims & Hers, which called the lawsuit a “blatant attack by a Danish company on millions of Americans who rely on compounded medications for access to personalized care,” said it plans to “continue to fight to provide choice, affordability, and access.”
Why This News is Important
Hims & Hers pulling its copycat pill from the market could reduce competition for Novo Nordisk. Rival Eli Lilly is expected to receive FDA approval for its own weight-loss pill later this year.
The FDA said on Friday that it plans to “take decisive steps to restrict” the use of GLP-1 active ingredients in compounded versions of the popular weight-loss medications, citing Hims & Hers by name in the statement.
The announcement from Hims & Hers last week that it would start selling the compounded drug initially sent its shares higher, before giving up those gains as Novo Nordisk attacked the product. Shares of Hims & Hers, which has run into conflicts with Novo Nordisk previously, have lost more than 60% of their value over the past 12 months. Novo Nordisk shares are down about 40% over the same period, while Eli Lilly has gained more than 20%.
