Novo Nordisk Scores Rare Victory in Battle Against GLP-1 Compounders

Novo Nordisk has sued Hims and Hers Health for patent infringement after the latter launched a cheap version of Novo's weight-loss medication Wegovy. This lawsuit comes amid increasing FDA scrutiny on compounded GLP-1 drugs. Novo's shares rose, reflecting investor confidence in FDA's clampdown.

Novo Nordisk has filed a lawsuit against Hims and Hers Health over patent infringement, following the telehealth firm's brief launch of a $49 version of Novo's Wegovy weight-loss pill. The release, subsequently canceled, drew ire from the FDA and triggered market fluctuations.

The legal action signals an intensified FDA stance on compounded GLP-1 drugs, often produced by pharmacies, which threaten the earnings of major pharmaceutical producers like Novo and Eli Lilly. Analysts note this could reduce competition for patented weight-loss treatments.

Hims' introduction of the semiaglutide-based pill loomed large for Novo and Eli Lilly shares, which were initially hit. However, the FDA's quick response and clampdown on unregulated drugs have buoyed Novo's stock by almost 7%, marking a strategic win in its ongoing battle against similar compounders.

(With inputs from agencies.)