Online telehealth company Hims and Hers Health on Thursday began offering a much cheaper $49 compounded version of Novo Nordisk’s new Wegovy weight-loss pill in a move that expands sales to many Americans but could undercut Novo’s and Eli Lilly’s plans for the consumer market.
The news touched off a swift reaction on Wall Street as investors sold off Novo and Lilly shares, and the Danish drugmaker promised a legal challenge to the move by Hims. Novo shares fell 8.6%, while Lilly was off 6%. Hims said the $49 one-month introductory price will rise to $99 per month for those who purchase a five-month plan and pay upfront. The monthly price is higher for a three-month subscription. Novo plans to charge $199 for its oral Wegovy, with no subscription.
The announcement comes as Novo warned on Wednesday that pricing pressure was unprecedented for its weight-loss medicines and dropped its full-year forecast. Novo shares on Thursday hit their lowest level since July 2021. Novo spokeswoman Ambre James-Brown said only the Danish drugmaker can sell the Wegovy pill with its unique technology that allows absorption of the medicine.
Hims had been allowed by the U.S. Food and Drug Administration to sell versions of Novo’s GLP-1 injectible drugs while the branded medicines were in short supply. Since then, it has made “personalized” copies of the branded drugs at different doses or regimens than those available from Novo and other drug companies.
