Novo Nordisk Scores Victory in Battle Against Weight-Loss Copycats

Novo Nordisk experienced an over 8% surge in shares after telehealth firm Hims & Hers halted its $49 weight-loss pill launch, bowing to pressure from the Danish company and the U.S. FDA. This follows the FDA's increased scrutiny on compounded GLP-1 drugs, which threatens competitive alternatives to branded treatments.

The swift abandonment by Hims & Hers came after the debut of its semaglutide-based pill last Thursday. This move was seen as a rare triumph for Novo Nordisk, which has been contending with copycat drugs threatening its holdings, such as its popular Wegovy and Ozempic formulations.

The FDA’s broader crackdown is perceived positively for companies like Novo Nordisk and rival Eli Lilly, even as Hims experienced a nearly 15% drop in premarket trades. Pricing challenges remain for Novo amidst new competitors and a dynamic market setting, amplified by Eli Lilly’s upcoming oral GLP-1 pill.