Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy NVO?
Source: seekingalpha
- Market Reaction: Following Hims & Hers' announcement to halt the sale of its knockoff Wegovy pill, shares of Novo Nordisk surged 7% in premarket trading, while HIMS shares plummeted 16%, indicating a strong market response to the news.
- Legal Threats: Faced with potential legal action and an FDA response, Hims & Hers decided to stop offering this treatment after having 'constructive conversations' with industry stakeholders, reflecting the increasingly stringent regulatory environment.
- Drug Regulation: While compounded drugs are generally more affordable, the lack of FDA safety and quality reviews necessitates a doctor's prescription for consumers, which challenges market trust in these products and raises concerns about their efficacy.
- Market Dynamics: The $49 pricing strategy by Hims & Hers was deemed to exceed legal boundaries, especially as the national shortage for Wegovy and Ozempic is no longer applicable, highlighting the risks in the company's market strategy.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 37.620
Low
42.00
Averages
54.67
High
70.00
Current: 37.620
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Expansion Plans: The company aims to broaden its product offerings, and as brand recognition increases in the consumer market, repeat purchases from existing users and new subscriber additions will accelerate revenue growth, creating a positive feedback loop.
- Competitive Challenges and Opportunities: Despite facing legal challenges from Novo Nordisk, Hims & Hers has the potential to disrupt traditional drug sales through its direct sales model, and while short-term competitive pressures may exist, the long-term growth opportunities remain significant.
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- Eaton's Acquisition Plans: Eaton's strategy to spin off its eMobility unit and acquire Boyd Thermal aims to bolster its competitive edge in liquid cooling technology, which is crucial for managing heat in AI chips, thereby enhancing its market position.
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- Weight Loss Innovation: Allurion Technologies' gastric balloon system gained FDA approval, offering a non-surgical weight loss option for patients with a BMI of 30-40, which is anticipated to expand the company's market share in the obesity sector.
- Acquisition Deal: Gilead Sciences is acquiring Arcellx for $115 per share, totaling $7.8 billion, a move that will strengthen Gilead's position in cell therapy and enhance its collaboration with Kite Pharma.
- Clinical Trial Developments: Novo Nordisk's CagriSema missed key goals in its trial against Zepbound, although it demonstrated a favorable safety profile, which may influence future market strategies.
See More
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- Market Performance: The NASDAQ 100 Pre-Market Indicator fell by 270.65 points to 24,763.72, indicating a weak market sentiment that could impact investor confidence.
- Active Stocks: Rackspace Technology, Inc. (RXT) traded 5,439,330 shares at $2.09, which is 149.26% above its target price of $1.4, suggesting optimistic market expectations for its future performance.
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See More
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- Significant User Growth: By 2025, Hims & Hers' subscriber base surged from 300,000 in 2020 to 2.5 million, with an addition of 280,000 new subscribers, showcasing the success of its digital direct-to-consumer model and enhancing the company's sustainable profitability.
- Innovative Revenue Model: Hims & Hers has established an annuity-like income stream through its subscription model, with customers consistently purchasing multiple products, driving stable revenue growth and future potential for expanding its product offerings to meet market demand.
- Market Competition Challenges: While Hims & Hers benefited from a supply shortage of Novo Nordisk's GLP-1 drugs and launched copycat versions, Novo Nordisk has filed a lawsuit against it, which may impact short-term sales; however, the long-term growth potential remains strong.
- Investor Focus: With a price-to-earnings ratio of approximately 29x, value investors may be disinterested, yet growth investors are optimistic about its profitability and market expansion potential, indicating market recognition of its future development.
See More
Growth Potential Analysis of Hims & Hers
- Significant User Growth: By 2025, Hims & Hers is projected to reach 2.5 million subscribers, a 733% increase from 300,000 in 2020, indicating the effectiveness of its digital marketing strategy in attracting new customers and enhancing retention.
- Innovative Revenue Model: The subscription model creates an annuity-like income stream, with 280,000 new subscribers in 2025 expected to further drive revenue growth, breaking away from traditional pharmaceutical sales methods and enhancing market competitiveness.
- Market Expansion Plans: The company aims to broaden its product offerings, and as brand recognition increases in the consumer market, repeat purchases from existing users and new subscriber additions will accelerate revenue growth, creating a positive feedback loop.
- Competitive Challenges and Opportunities: Despite facing legal challenges from Novo Nordisk, Hims & Hers has the potential to disrupt traditional drug sales through its direct sales model, and while short-term competitive pressures may exist, the long-term growth opportunities remain significant.
See More
