Novo Nordisk Challenges Rival's Cut-Price Weight Loss Pill

Novo Nordisk's CEO, Mike Doustdar, was surprised to learn about U.S. telehealth firm Hims and Hers Health launching a cheaper version of their weight loss pill Wegovy. The news sent Novo's stocks diving, with Doustdar asserting that the cheaper version lacks their absorption technology, promising legal action against Hims.

Novo Nordisk CEO Mike Doustdar was in a meeting with investors when an unexpected announcement was made. U.S. telehealth company Hims and Hers Health revealed they would release a budget-friendly version of Novo's popular Wegovy weight-loss pill.

The news, which Reuters initially reported, prompted a swift drop of 8% in Novo's stock. Concerns arose around the $49 pill potentially undermining Novo's entry into the consumer market.

Doustdar expressed skepticism regarding the knock-off's efficacy, stating it lacks the technology ensuring proper absorption of the active compound. In response to this competitive threat, Novo announced plans for legal action against Hims while grappling with an evolving obesity drug market.

(With inputs from agencies.)