Market reaction
Shares of Novo Nordisk rose strongly on Monday after Hims Hers Health discontinued a recently introduced $49 compounded weight-loss pill that used semaglutide, the active ingredient in Novo's Wegovy and Ozempic therapies. By 08:25 GMT in Copenhagen trading, Novo stock had climbed by more than 8%.
Product withdrawal and regulator response
Hims launched the compounded pill last Thursday and withdrew it by Saturday, saying the company had held "constructive conversations with stakeholders." The withdrawal followed objections from Novo Nordisk and remarks from U.S. regulators, including the Food and Drug Administration.
The FDA indicated it plans to tighten oversight of unauthorized compounded GLP-1 drugs, flagging concerns about quality, safety and potential breaches of federal law. The regulator said it intends to curb the use of GLP-1 ingredients in compounded medications that are promoted as substitutes for approved therapies.
Legal and industry response
Novo confirmed it will pursue legal action against Hims over the plan to market compounded versions of semaglutide. A spokesperson for Eli Lilly said the company welcomed the FDA's move to increase scrutiny of compounded GLP-1 products.
Context on recent Novo Nordisk performance
The gains on Monday followed a prior uptick on Friday, when Novo shares rose more than 5% after comments from FDA Commissioner Marty Makary suggesting stricter oversight of unauthorized compounded GLP-1 drugs. The share rebound comes after a sharp selloff last week that erased about $50 billion from Novo Nordisk's market value.
Novo had warned investors that "unprecedented" pricing pressure would weigh heavily on sales and profits in the current year. The company shocked investors by forecasting that revenue and earnings could fall by as much as 13% in 2026, interrupting a run of double-digit growth.
Competitive dynamics
Market commentary in the period also highlighted that Eli Lilly has gained ground in U.S. prescription trends, and that the company projected 2026 profit above Wall Street expectations earlier in the week. Those developments came as U.S. political pressure to lower drug prices intensified, a factor cited in market concerns about the high-margin obesity treatment market.
Performance year-to-date
Despite Monday's bounce, Novo Nordisk stock remained roughly 2% lower since the start of the year.
Note: This article reports on the product withdrawal, regulatory statements, market moves, legal steps and company outlook as described by the involved parties. It does not add details beyond those provided by the companies and regulators mentioned.