"Luckily for Novo, they're now back up by over 5 percent, after its big brother came to the rescue: later that same day, the US Food and Drug Administration made its own vow that it would crack down on "illegal copycat drugs." With the script now flipped, Hims' stock nosedived by ten percent in after-hours trading, per Reuters, and as of today, is down by over 2 percent."
"On Thursday, the Danish pharmaceutical giant vowed to take legal action against Hims & Hers after the telehealth company announced a much more affordable knockoff of its weight loss pill, Wegovy- which it's offering starting at $49 for a month's supply, though the price subsequently jumps to $99. "The action by Hims & Hers is illegal mass compounding that poses a significant risk to patient safety," Novo said in a statement, ."
Novo Nordisk rose to prominence with semaglutide products Ozempic and Wegovy but now faces falling shares and increased competition from cheaper alternatives. Telehealth company Hims & Hers announced a compounded Wegovy knockoff priced initially at $49 per month, later rising to $99. Novo Nordisk characterized the Hims offering as illegal mass compounding that endangers patient safety and vowed legal and regulatory action to protect patients, its intellectual property, and the US drug approval framework. Novo accused Hims of deceptive behavior and noted prior FDA warnings. The FDA signaled a crackdown on copycat drugs, triggering sharp stock movements. Compounded drugs are made by pharmacies using their own ingredients rather than by the original pharmaceutical manufacturer.
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