Novo Nordisk Drops Lawsuit Against Hims & Hers After Agreement to Sell Wegovy and Ozempic Through Platform
Novo Nordisk has dropped its lawsuit against telehealth company Hims & Hers after both firms reached an agreement that will allow the pharmaceutical company’s branded weight loss medications to be sold through the Hims platform.The development marks a shift in the dispute between the companies that began earlier when Hims announced plans to introduce a lower priced alternative to Novo Nordisk’s widely used weight loss treatment.
Dispute Began Over Planned Off Brand Wegovy Launch
Early last month, Hims & Hers revealed plans to launch a cheaper off brand version of the weight loss drug Wegovy. The announcement came only weeks after Novo Nordisk introduced a reformulated version of the blockbuster medication.Novo Nordisk strongly opposed the move and signaled it would take legal action. The drugmaker described the planned product as an unapproved, inauthentic and untested imitation of semaglutide, the active ingredient used in Wegovy.
However, the situation changed quickly. Just two days after the announcement, Hims withdrew its plan to offer the off brand version of the medication.
The reversal came a day after the US Food and Drug Administration warned that it could restrict access to ingredients commonly used to replicate popular weight loss drugs.
FDA Position on GLP 1 Drugs Influenced the Decision
In 2024, the Food and Drug Administration declared that GLP 1 drugs were no longer experiencing a shortage. The decision was expected to reduce the compounding of such medications.Despite this, some companies continued selling compounded versions under a regulatory exception. The practice allows customised prescriptions for individual patients, which companies like Hims relied on to continue offering alternative formulations.
Agreement Allows Hims to Offer Branded Wegovy and Ozempic
Under the agreement announced on Monday, Hims will begin offering both oral and injectable versions of Novo Nordisk’s medications including Wegovy and Ozempic on its platform later this month.As part of the deal, Hims will also stop advertising compounded GLP 1 drugs on its platform and in its marketing materials.
Novo Nordisk stated that while it is dropping the lawsuit for now, it reserves the right to refile the case in the future.
Hims Shares Surge After Announcement
Following the announcement, shares of Hims & Hers Health Inc. surged more than 36 percent in Monday morning trading. Even with the sharp increase, the stock remains significantly below its 52 week high of around $70.US listed shares of Novo Nordisk also moved higher, rising 1.8 percent after the news of the agreement.
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