Hims And Hers Health saw its shares surge Monday after drugmaker Novo Nordisk dropped a patent lawsuit over compounded weight-loss drugs and agreed to let the platform sell its branded semaglutide medicines.
The companies said Monday they reached an agreement allowing Hims to offer Novo Nordisk’s injectable and oral semaglutide products through its telehealth platform while ending marketing of compounded versions of the drugs.
Shares of Hims rose more than 40 percent in morning trading following the announcement. Novo Nordisk’s Copenhagen-listed stock climbed about 2.1 percent even as broader markets declined, with the Stoxx 600 down about 1 percent and the S&P 500 falling 0.6 percent.
Agreement Ends Legal Dispute Over Compounded Drugs
Novo Nordisk had filed a lawsuit earlier this year, accusing Hims And Hers Health of “mass illegal compounding” after the telehealth provider began selling a cheaper copy of the weight-loss pill sold under the brand name Wegovy. The pill was marketed for about $49, roughly $100 less than Novo Nordisk’s direct-to-consumer price.
The dispute intensified after regulators raised concerns about compounded drugs. The U.S. Food and Drug Administration said it would take “decisive steps” to limit improper compounding practices and referred Hims to the Department of Justice for potential violations.
Under the new agreement, Hims And Hers Health will provide access to FDA-approved versions of semaglutide, including drugs sold as Ozempic and Wegovy, at pricing comparable to other telehealth platforms. The company also agreed to stop promoting compounded GLP-1 weight-loss medications except in rare, medically justified cases.
Novo Nordisk CEO Mike Doustdar said the legal conflict is effectively resolved.
“We have decided to drop the current court proceedings,” Doustdar said in an interview. “We reserve the right to bring it back if needed, but I don’t foresee that happening.”
Regulators And Industry Watch The Weight-Loss Market
FDA Commissioner Marty Makary welcomed the agreement, saying it ensures patients receive approved medicines rather than unregulated copies.
“Importantly, they will keep them affordable and limit compounded GLP-1s to rare, FDA-compliant cases,” Makary wrote in a post on social platform X.
Hims And Hers Health had benefited from a regulatory loophole that allows compounding pharmacies to produce copycat drugs during supply shortages. Semaglutide products were once scarce as demand for weight-loss medications surged worldwide.
Novo Nordisk has since expanded manufacturing capacity, ending the shortage and reinforcing its patent protection, which runs in the United States until 2032.
Despite that change, Hims argued its compounded versions were legal because they were customized for individual patients. The company eventually withdrew the low-cost pill amid regulatory scrutiny.
Companies Position Themselves For Expanding Demand
The agreement also marks a reset in relations between the companies. Novo Nordisk previously partnered with Hims last year to offer discounted weight-loss injections, but ended the arrangement after two months, citing concerns about “deceptive” marketing practices.
Doustdar said the new partnership includes clearer limits on compounded drugs.
“Hims And Hers Health has agreed that upon receiving our products, they will no longer advertise or promote compounded products to the masses,” he said.
Demand for weight-loss drugs remains strong. Doustdar said Novo Nordisk has already recorded more than 600,000 prescriptions for its Wegovy pill since its launch earlier this year.
Hims CEO Andrew Dudum said the company expects the anti-obesity drug market to expand rapidly as new treatments reach patients.
“The demand will continue to accelerate with the new assortment that’s coming out,” Dudum. Adding that telehealth platforms can offer options based on price, delivery method, and personalization.
Competition is also increasing. Drugmaker Eli Lilly is preparing to launch its own weight-loss pill, orforglipron, pending FDA approval expected later this year.
For now, both companies say the agreement allows patients to transition to approved treatments while stabilizing a fast-growing but closely watched market.
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