COPENHAGEN, Feb 9 (Reuters) – Novo Nordisk’s Frankfurt-listed shares jumped 4.5% on Monday after telehealth company Hims & Hers quickly pulled a $49 compounded weight-loss pill over the weekend, responding to legal threats from Novo and the U.S. Food and Drug Administration.
Hims had launched the pill last Thursday, formulating it with semaglutide—a crucial component in Novo’s highly successful drugs Wegovy and Ozempic—which immediately drew criticism from the Danish pharmaceutical company and regulatory bodies. Hims announced on Saturday it would discontinue the treatment after having “constructive conversations with stakeholders.”
Novo Nordisk’s stock had already seen a rebound of over 5% on Friday after FDA Commissioner Marty Makary indicated a coming crackdown on unauthorized compounded GLP-1 medications, which have been eroding Novo’s pricing strength in the weight-loss and diabetes markets.
Despite this latest increase, Novo continues to face significant challenges from competitors like Eli Lilly and the availability of lower-cost compounded alternatives. Novo highlighted “unprecedented price pressure” during its full-year earnings report last week, causing a 17% drop in its stock value.
Novo Nordisk’s market capitalization reached its peak in June 2024, but has since lost nearly two-thirds of its value.
(Reporting by Stine Jacobsen in Copenhagen, Editing by Louise Heavens)
