Novo Nordisk shares jump on Hims move

Novo Nordisk shares jumped over 8% after telehealth company Hims & Hers abandoned plans to launch a $49 oral weight‑loss pill based on semaglutide, the active ingredient in Novo’s Wegovy and Ozempic. Hims pulled the offering following legal threats from Novo and scrutiny from the U.S. Food and Drug Administration, and said it would halt the treatment after “constructive conversations with stakeholders.” The move eased investor concern about near‑term low‑cost competition to Novo’s GLP‑1 franchise, which has driven strong demand and revenue growth but faces mounting pressure from rivals and compounding pharmacies offering cheaper versions.

The episode marks a rare win for Novo in efforts to block compounded copies of its GLP‑1 drugs; compounders recreate brand medicines by combining or altering ingredients, and have posed a pricing threat. Novo’s shares had already recovered some ground after the FDA signaled it would crack down on unauthorized compounded GLP‑1 medications. Still, analysts caution that Novo faces intense competition across the fast‑evolving obesity and diabetes market—Eli Lilly and other pharmacies continue to offer injectable semaglutide options and companies are racing to develop oral formulations and next‑generation therapies.

Hims said it would refocus on providing approved weight‑loss treatments via its telehealth platform and invest in other care areas, stating affordability remains a priority but not at the expense of safety and effectiveness. Observers noted that developing an oral treatment matching the efficacy and safety of injectable GLP‑1s is scientifically and commercially challenging, and that Hims’ retreat underscores the difficulty of translating low‑price pill concepts into viable products.

Market reaction signaled relief that a potential disruptive pricing threat was removed, reinforcing confidence in Novo Nordisk’s near‑term pricing power. However, long‑term competition is expected to intensify as established drugmakers and new entrants pursue oral options, combination therapies and drugs with improved safety profiles. The sector continues to balance innovation, access and cost, with insurers, health systems and patients seeking ways to make weight‑loss treatments affordable while companies defend market positions and scale supply to meet surging demand.