Hims & Hers Health, Inc. HIMS, a leading health and wellness platform, is moving further into the fast-growing weight-loss market with the announcement of a new compounded semaglutide pill that contains the same active ingredient as Novo Nordisk’s NVO Wegovy.
The pill provides a needle-free alternative for eligible patients.
By introducing a compounded oral option with an introductory price starting at $49 for the first month, Hims & Hers is positioning itself as a more accessible entry point into a category typically dominated by high-priced branded injectables from NVO and arch rival Eli Lilly LLY.
Introductory pricing is available only for new, eligible weight-loss customers. The first month is priced at $49 under a five-month plan, followed by $99 per month for the remaining months, paid upfront.
Consequently, shares of NVO and LLY tumbled following this announcement.
Why Did NVO and LLY Slide on HIMS’ Announcement?
Novo Nordisk has achieved tremendous commercial success with Wegovy and Ozempic since their launch.
In late December, the FDA approved NVO’s 25 mg oral semaglutide (Wegovy pill) for obesity and cardiovascular disease, marking the first GLP-1 pill approved in the United States, which was subsequently launched in early January.
NVO launched its Wegovy pill at about $5 per day, or $149 per month, for the 1.5 mg starting dose. The 4 mg dose is also priced at $149 per month through April 15, 2026, after which it will increase to $199 per month, while the highest doses will be available for $299 per month.
On the other hand, Eli Lilly’s tirzepatide franchise — marketed as Mounjaro for type 2 diabetes and Zepbound for obesity — has rapidly become a core growth engine. Despite being on the market for just over three years, these products are already key contributors to Lilly’s top-line expansion, underscoring the durability of its growth outlook.
Hence, an oral pill at an introductory price of $49 by Hims & Hers will adversely impact NVO and LLY’s dominant position in the obesity market. The launch comes at a time when the demand for GLP-1–based weight-loss therapies remains exceptionally strong, but access and cost continue to limit adoption.
In response, NVO stated that it intends to pursue legal and regulatory actions to protect patients, its intellectual property, and the integrity of the drug approval process in the United States.
Novo Nordisk also noted that the FDA had previously warned Hims & Hers about what it described as misleading advertising related to GLP-1 knockoff products.
The company emphasized that it is the sole manufacturer of an FDA-approved Wegovy oral pill, which uses proprietary SNAC technology to enable oral absorption of semaglutide.
Novo Nordisk further cited recently updated standards of care from the American Diabetes Association’s Obesity Association, which discourage the use of compounded GLP-1 therapies due to concerns around safety, quality and effectiveness.
In its press release, HIMS mentioned that compounded drug products are not approved or evaluated for safety, effectiveness, or quality by the FDA. The compounded product it is introducing uses a different formulation and delivery system than FDA-approved oral semaglutide.
Eli Lilly has also filed a regulatory application seeking the approval of its oral GLP-1 pill, orforglipron, for obesity, which is currently under review by the FDA. A launch is expected later in the year.
HIMS Stock Slides as FDA Weighs In
Amid the hullaballoo, the FDA’s Marty Makary stated that the agency will take swift action against companies mass-marketing illegal copycat drugs and claiming they are similar to FDA-approved products.
While HIMS stock rose in early trade on Feb. 5, it was down 3.77% at the end of the day. The stock was down 10.3% in after-hours trading as well.
NVO was down 8% on Feb. 5 but was up in after-market trading. It has been a tough week for NVO. While the fourth-quarter results (reported earlier in the week) beat expectations, the outlook for 2026 disappointed investors, leading to a sharp selloff.
LLY was also down 7.8% but traded in the green in after-hours trading. The company reported strong fourth-quarter results (earlier in the week) that topped both earnings and sales estimates. Its robust outlook for 2026 also helped propel the stock.
Eli Lilly currently has a Zacks Rank #3 (Hold), while both Hims & Hers Health and Novo Nordisk have a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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