Novo Nordisk shares jump after Hims drops weight-loss pill

Novo Nordisk shares rose after telehealth company Hims & Hers abandoned plans to launch a low-cost weight-loss pill based on semaglutide, following legal and regulatory pressure.

Frankfurt-listed shares of the Danish drugmaker climbed about 4.5% after Hims reversed its decision over the weekend. The telehealth company had introduced the $49 compounded weight-loss pill last week, triggering pushback from Novo Nordisk and U.S. regulators, News.Az reports, citing Reuters.

The pill was based on semaglutide, the key ingredient used in Novo Nordisk’s blockbuster drugs for weight loss and diabetes treatment. Hims said it would stop offering the treatment after what it described as constructive discussions with stakeholders.

Novo Nordisk shares had already gained momentum late last week after signals from the U.S. Food and Drug Administration that it would tighten oversight of unauthorized compounded GLP-1 drugs. These cheaper alternatives have posed a growing challenge to pharmaceutical companies’ pricing power in the weight-loss and diabetes markets.

Despite the recent rebound, Novo Nordisk continues to face strong competition from rivals and lower-cost alternatives. The company warned of unprecedented pricing pressure during its recent earnings report, which contributed to a sharp drop in its stock value.

Novo Nordisk’s market capitalization reached a peak in mid-2024 but has since declined significantly amid intensifying competition and pricing concerns across the sector.

News.Az 

By Aysel Mammadzada