Novo's Legal Battle: A Fight Over Weight-Loss Drugs and Market Dominance

Novo Nordisk has filed a lawsuit against U.S. telehealth company Hims and Hers Health, alleging patent infringement after the latter launched a $49 version of Novo's weight-loss drug, Wegovy. Despite Hims quickly withdrawing the product following regulatory backlash, Novo's stocks rose nearly 6% on the news.

The dispute underscores the ongoing conflict between drugmakers and compounding pharmacies, which mix active ingredients, impacting original manufacturers' profits. According to Novo's general counsel, the launch was a 'tipping point' that has prompted legal action to halt the sale of unapproved compounded drugs.

Hims claims the lawsuit limits consumer choice, while analysts predict potential regulatory crackdowns on compounded GLP-1 drugs. As Novo's market share drops amid fierce competition, the company seeks to reassert its dominance in the evolving consumer-focused obesity drug market.