Hims Launches $49 Wegovy Copy; Novo Nordisk Shares Drop

Hims & Hers Enters Weight-Loss Market with $49 Wegovy Alternative

Telehealth company Hims & Hers Health has launched a compounded version of the popular weight-loss drug Wegovy, with an introductory price of $49 per month. This move directly challenges Novo Nordisk, the manufacturer of the brand-name drug, and sent its stock price tumbling.

Competitive Landscape and Pricing

The new offering from Hims is based on semaglutide, the same active ingredient found in Novo Nordisk's Wegovy. The company's pricing strategy starts at $49 for the first month, rising to $99 per month for longer-term plans. This is substantially lower than the brand-name drug, which Novo plans to offer for $199 without a subscription.

Impact on Pharmaceutical Stocks

Following the announcement, shares of Novo Nordisk dropped by 8.6%. The news also impacted its main competitor, Eli Lilly, whose shares fell by 4% in premarket trading. The development adds to existing pricing pressures that Novo Nordisk has warned about in the lucrative weight-loss drug market.

Summary and Outlook

Hims' entry highlights the growing market for compounded drugs, a practice that remains a point of contention with regulators. While offering a lower-cost alternative, the FDA has previously cautioned against marketing claims for compounded drugs that are not FDA-approved. The market will closely watch the regulatory response and consumer adoption of these alternatives.

FAQ

Q: What is a compounded drug?
A: It is a drug mixed by a pharmacy to create a medication tailored to an individual patient. The practice is controversial when done on a mass scale for drugs not officially in shortage.

Q: How did the market react to the Hims announcement?
A: Novo Nordisk's stock fell 8.6%, and Eli Lilly's stock declined by 4% as investors anticipated increased competition.

Source: Investing.com