Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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by Hims & Hers was deemed to exceed legal boundaries, especially as the national shortage for Wegovy and Ozempic is no longer applicable, highlighting the risks in the company's market strategy.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVO?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVO is 54.67 USD with a low forecast of 42.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 43.340
Low
42.00
Averages
54.67
High
70.00
Current: 43.340
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.
Novo Nordisk Expects Earnings Decline in 2026
- Earnings Guidance Decline: Novo Nordisk's 2025 earnings report revealed a grim outlook for 2026, with sales and earnings expected to decline between 5% and 13%, primarily due to lower GLP-1 drug prices in the U.S., indicating significant market pressures and uncertainty regarding future profitability.
- Surge in GLP-1 Demand: Despite these challenges, the company's new GLP-1 pill attracted 170,000 patients within just four weeks of launch, far exceeding management's expectations, highlighting the potential growth opportunities in the weight-loss drug market.
- Increased Market Acceptance: The preference for oral medications over injections among consumers suggests that Novo Nordisk's GLP-1 pill could tap into a larger market, and the pricing agreement with the U.S. government further boosts demand, creating a favorable environment for sales growth.
- Optimistic Long-Term Outlook: Although Novo Nordisk's stock has lost two-thirds of its value since its peak in 2024, the early success of the pill indicates that future volume could offset the pricing pressures expected in 2026, with the CEO's comments reflecting a positive internal outlook for the company's future.
See More
Novo Nordisk Shares Surge After Competitor Withdraws Drug
- Stock Surge: Novo Nordisk shares jumped 8% on Monday following Hims & Hers' announcement to withdraw its copycat weight-loss pill, indicating increased market confidence in Novo Nordisk's products.
- Legal Threats: Novo Nordisk and the FDA had threatened legal action against Hims & Hers, prompting the withdrawal, which not only protects Novo Nordisk's market share but may also reshape competitive dynamics in the industry.
- Market Reaction: Hims & Hers stated on social media that after constructive conversations with industry stakeholders, they decided to stop offering the treatment, a move that could further solidify Novo Nordisk's leadership in the weight-loss drug market.
- Commitment to Safe Care: Hims & Hers emphasized its commitment to providing safe, affordable, and personalized care, and while the withdrawal may impact its trust among consumers, it reflects a strategic pivot in response to regulatory pressures.
See More
Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
- 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.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Novo Nordisk Shares Surge After Hims Withdraws Weight-Loss Pill
- Significant Stock Surge: Novo Nordisk shares rose over 8% on Monday, reaching a market peak, primarily driven by Hims' withdrawal of its $49 compounded weight-loss pill, indicating a rebound in market confidence towards Novo.
- Legal Pressure Impact: Hims announced the discontinuation of the drug on Saturday under legal pressure from Novo and the FDA, reflecting the regulatory body's strict oversight of unauthorized compounded medications, which may further influence market competition dynamics.
- Market Value Fluctuation: Following a loss of approximately $50 billion in market value last week due to unprecedented pricing pressures, the stock rebound indicates renewed investor confidence, despite the company's forecast of a potential 13% decline in revenue and profits by 2026.
- Intensified Competition: With Eli Lilly leading in U.S. prescription trends, Novo Nordisk faces increasing competitive pressure, particularly in the high-margin obesity drug market, suggesting that future market dynamics will significantly impact its performance.
See More
Novo Nordisk Expects Earnings Decline in 2026
- Earnings Guidance Decline: Novo Nordisk's 2025 earnings report revealed a grim outlook for 2026, with sales and earnings expected to decline between 5% and 13%, primarily due to lower GLP-1 drug prices in the U.S., indicating significant market pressures and uncertainty regarding future profitability.
- Surge in GLP-1 Demand: Despite these challenges, the company's new GLP-1 pill attracted 170,000 patients within just four weeks of launch, far exceeding management's expectations, highlighting the potential growth opportunities in the weight-loss drug market.
- Increased Market Acceptance: The preference for oral medications over injections among consumers suggests that Novo Nordisk's GLP-1 pill could tap into a larger market, and the pricing agreement with the U.S. government further boosts demand, creating a favorable environment for sales growth.
- Optimistic Long-Term Outlook: Although Novo Nordisk's stock has lost two-thirds of its value since its peak in 2024, the early success of the pill indicates that future volume could offset the pricing pressures expected in 2026, with the CEO's comments reflecting a positive internal outlook for the company's future.
See More
Novo Nordisk Shares Surge After Competitor Withdraws Drug
- Stock Surge: Novo Nordisk shares jumped 8% on Monday following Hims & Hers' announcement to withdraw its copycat weight-loss pill, indicating increased market confidence in Novo Nordisk's products.
- Legal Threats: Novo Nordisk and the FDA had threatened legal action against Hims & Hers, prompting the withdrawal, which not only protects Novo Nordisk's market share but may also reshape competitive dynamics in the industry.
- Market Reaction: Hims & Hers stated on social media that after constructive conversations with industry stakeholders, they decided to stop offering the treatment, a move that could further solidify Novo Nordisk's leadership in the weight-loss drug market.
- Commitment to Safe Care: Hims & Hers emphasized its commitment to providing safe, affordable, and personalized care, and while the withdrawal may impact its trust among consumers, it reflects a strategic pivot in response to regulatory pressures.
See More
Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
- 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.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Novo Nordisk Shares Surge After Hims Withdraws Weight-Loss Pill
- Significant Stock Surge: Novo Nordisk shares rose over 8% on Monday, reaching a market peak, primarily driven by Hims' withdrawal of its $49 compounded weight-loss pill, indicating a rebound in market confidence towards Novo.
- Legal Pressure Impact: Hims announced the discontinuation of the drug on Saturday under legal pressure from Novo and the FDA, reflecting the regulatory body's strict oversight of unauthorized compounded medications, which may further influence market competition dynamics.
- Market Value Fluctuation: Following a loss of approximately $50 billion in market value last week due to unprecedented pricing pressures, the stock rebound indicates renewed investor confidence, despite the company's forecast of a potential 13% decline in revenue and profits by 2026.
- Intensified Competition: With Eli Lilly leading in U.S. prescription trends, Novo Nordisk faces increasing competitive pressure, particularly in the high-margin obesity drug market, suggesting that future market dynamics will significantly impact its performance.
See More
