Novo Nordisk recently faced a significant market shake-up as its shares dropped 7% following the introduction of a $49 compounded Wegovy pill by telehealth platform Hims & Hers. This competitive alternative, priced significantly lower than Novo’s branded $149 version, has triggered intense industry discussions and legal challenges.
What’s Behind the Controversy?
The compounded weight-loss pill by Hims & Hers is being marketed as a personalized treatment option, leveraging a different formulation and delivery mechanism from FDA-approved semaglutide medications like Wegovy. Novo Nordisk has called this move “illegal mass compounding” and argues that it risks patient safety while undermining the patent and drug approval process. Notably, semaglutide remains under patent protection until 2032 in the U.S.
Stock Market Reactions and Industry Fallout
This development has not only impacted Novo Nordisk, which has already been struggling with a 50% stock drop in 2025 and an additional 15% decline in early 2026, but it also sent Eli Lilly’s shares plummeting 7%. Investors expressed concerns about intensifying competition in the growing weight-loss medication market.
Novo’s CEO, Mike Doustdar, highlighted the affordability initiative as a strategic move to make Wegovy pills accessible to more patients. Since the January rollout, 170,000 people have started taking the drug. Nevertheless, market analysts remain cautious given Novo’s 2026 projection of a 5%–13% decline in sales due to U.S. pricing pressures and impending patent expirations in markets like Canada and China.
Hims & Hers’ Strategy
Hims & Hers argues that their compounded version aligns with legal definitions for personalized treatments, distancing itself from FDA-approved methods while emphasizing alternative formulations. Their introduction of a $49 initial cost pill, with a $99 monthly plan thereafter, has attracted some positive attention despite prior warnings from the FDA about deceptive advertising practices involving compounded injectable semaglutide products.
The telehealth giant has previously collaborated with Novo Nordisk on discounted weight-loss shots but faced termination within two months due to allegations of misleading marketing tactics. As this rivalry escalates, it’s clear that competition in the GLP-1 receptor market is heating up.
The Future of Weight-loss Medications
With competition growing following Hims & Hers’ announcement, pharmaceutical rival Eli Lilly is also preparing to launch its own weight-loss pill, Orforglipron, pending FDA approval in the first half of 2026. Meanwhile, Novo Nordisk must contend with both regulatory challenges and increasing market pressures to sustain its footing in what remains a lucrative but increasingly crowded sector.
Take Action: Affordable Solutions for Weight Management
For those considering weight-loss medications, it’s essential to consult healthcare providers to ensure safe and effective treatment. A trusted, FDA-approved product like Wegovy by Novo Nordisk offers a well-researched and clinically proven solution for weight management.
Stay informed about the latest developments in health and pharmaceutical innovations as the landscape evolves. Patient safety and informed decision-making remain paramount amidst these industry shifts.
