Novo Nordisk (NYSE: NVO) said it plans to pursue legal and regulatory action against telehealth provider Hims & Hers Health (NYSE: HIMS) after the company disclosed plans to sell a lower-priced alternative to Novo’s Wegovy weight-loss pill.
In an official statement, Novo said the move is intended to protect patients, its intellectual property, and the integrity of the U.S. drug approval system.
Key Points
- Novo Nordisk plans legal and regulatory action against Hims & Hers Health regarding the proposed compounded oral semaglutide pill.
- Hims says its oral alternative will be priced at $49 for the first month and $99 per month thereafter under a five-month plan.
- Novo’s FDA-approved oral Wegovy is priced at about $149 per month in the U.S.
- Shares of Novo Nordisk and Eli Lilly each fell roughly 7% after Hims disclosed its plans, while Hims stock later reversed gains.
- Novo said about 170,000 patients were already using its oral Wegovy shortly after its U.S. launch in early January.
Dispute Over Compounded Semaglutide
The conflict centers on Hims & Hers’ plan to sell a compounded oral semaglutide pill. Specifically, Novo Nordisk said this approach amounts to large-scale compounding that violates U.S. regulations and raises patient safety concerns.
Moreover, Novo accused Hims of repeatedly promoting unapproved versions of GLP-1 drugs, adding that U.S. regulators have previously warned the telehealth company about misleading advertising related to these products.
In response, Hims rejected those allegations. The company said its pill is legal because it is customized for individual patients. It added that the formulation and delivery method differ from FDA-approved oral semaglutide products.
Pricing Strategy Triggers Market Reaction
Unsurprisingly, pricing has emerged as a central point of contention. Novo currently sells its Wegovy pill for about $149 per month in the United States. By contrast, Hims said its oral alternative would cost $49 for the first month and $99 per month thereafter under a five-month plan.
The announcement rattled markets. Shares of Novo Nordisk (NYSE: NVO) and Eli Lilly (NYSE: LLY) each fell roughly 7% following Hims’ disclosure. Hims & Hers Health (NYSE: HIMS) initially rallied, but later reversed sharply after Novo confirmed it would challenge the rollout, underscoring investor uncertainty over the product’s future.
Manufacturing and Technology Differences
Furthermore, the legal clash has drawn attention to differences in how the drugs are made. Novo launched the oral version of Wegovy in the U.S. in early January. Shortly afterward, Chief Executive Mike Doustdar confirmed that approximately 170,000 patients were already using the medication.
Novo emphasized that its pill relies on proprietary SNAC technology, which enables semaglutide to be absorbed when taken orally. Therefore, the company questioned whether compounded alternatives could deliver comparable effectiveness without this process.
Hims countered by saying its once-daily pill contains the same active ingredient. It also added that the formulation allows healthcare providers to adjust doses for patients who prefer pills over injections or need help managing side effects.
History of a Failed Partnership
Importantly, the current dispute follows a short-lived partnership between the two companies. Last year, Novo and Hims collaborated to offer discounted injectable weight-loss treatments through the telehealth platform.
However, that arrangement ended after two months. Novo later said it withdrew from the partnership due to marketing practices it described as deceptive and potentially harmful to patients, a breakdown that now adds context to the escalating legal conflict.
Mounting Competitive Pressure
The clash comes at a difficult time for Novo Nordisk. The company’s stock lost nearly half its value in 2025, its worst annual performance on record, and shares are down about 15% year-to-date.
Earlier this week, Novo warned that sales and profits could decline between 5% and 13% in 2026, citing pricing pressure in the U.S. and the loss of semaglutide exclusivity in several international markets, including Canada and China.
Meanwhile, competition is also intensifying. Eli Lilly expects revenue to grow by about 25% this year and is preparing to launch its own oral GLP-1 drug, orforglipron, pending FDA approval in the first half of the year.
Executive Outlook
Responding to concerns about Novo’s trajectory, Doustdar said the company remains focused on expanding access to GLP-1 treatments. He also acknowledged that lowering costs for patients who previously could not afford the drugs could weigh on near-term results.
However, he characterized the approach as a long-term investment, arguing that although short-term pressure is unavoidable, broader affordability could support sustained growth over time.
