Hims removes $49 weight loss drug from shelves, Novo Nordisk stock rises

Telemedicine company Hims & Hers announced over the weekend that it would shelve plans to launch its $49 compound weight-loss pill after facing legal action from Novo Nordisk and related warnings from the US Food and Drug Administration. In response to this news, Novo Nordisk's shares listed in Frankfurt rose by 4.5% on Monday.

Hims & Hers launched the weight-loss pill last Thursday, with its core ingredient being semaglutide—the same key component used in Novo Nordisk's blockbuster weight-loss and diabetes injections. This move immediately drew opposition from the Danish pharmaceutical company and regulatory authorities. On Saturday, Hims & Hers stated that after “constructive discussions” with relevant stakeholders, they would cease offering this weight-loss product.

Previously, US FDA Commissioner Marty Makary had already stated that there would be a strict crackdown on unapproved GLP-1 compound drugs, which have impacted Novo Nordisk’s pricing power in the weight-loss and diabetes markets. Following this statement, Novo Nordisk's stock rebounded more than 5% last Friday.

Despite the latest price surge, Novo Nordisk still faces enormous operational pressure: on one hand, it must contend with competition from Eli Lilly; on the other, it must directly face the impact of lower-priced compound alternatives. In its full-year earnings report released last week, the company pointed out that it is experiencing “unprecedented pricing pressure,” a comment that directly triggered a 17% plunge in its stock price.

Novo Nordisk’s market capitalization peaked in June 2024, but has since evaporated by nearly two-thirds.

Editor: Li Zhaofu