Hims & Hers' Disruptive Move with Compounded Weight-Loss Pills

Hims & Hers plans to launch a compounded version of Novo Nordisk's Wegovy pill at $49 a month. This move, echoing its injectable drug approach, has unsettled Novo and Eli Lilly shareholders due to margin protection concerns. Analysts debate the legality and market impact of this innovation.

In a bold move that has stirred the pharmaceutical industry, Hims & Hers announced its plan to offer compounded versions of Novo Nordisk's Wegovy pill. Priced at an introductory $49 per month, this initiative aims to personalize treatment, akin to their previous strategy with injectable weight-loss drugs.

The announcement has caused shares of Novo Nordisk and its competitor Eli Lilly to dip amid fears over margin protection as more affordable alternatives arise. Markus Manns, a portfolio manager at Union Investment, called the move potentially illegal, adding an uncertainty layer to the obesity investment landscape.

Analysts like Karen Andersen of Morningstar and Michael Cherny of Leerink Partners are scrutinizing the implications, while Christian Moore of Bernstein notes the unsettling timing following Novo and Lilly's financial updates. As the market reacts, Evan Seigerman from BMO Capital Markets suggests the announcement could impact shares further.

(With inputs from agencies.)