Hims & Hers shares tick lower after Novo’s legal threat
Rafael Henrique | SOPA Pictures | access point
stock His and Hers Dropped after a legal threat on Friday Novo Nordisk.
The online teleheath company announced Thursday that it plans to launch a cheaper, knockoff version. Novo’s It prompted weight loss pill Novo to take legal action.
Him’s shares rose as much as 15% on the news in Thursday trading, but quickly pared back the gains and ended the session down 3.8% at a 12-month low after Novo said the action was “illegal.” Shares fell as much as 10% further on Friday before paring their losses. It was last traded down about 2%.
Hims said it will launch a Wegovy-style pill containing the same active ingredient as the original brand semaglutide, priced as low as $49 for the first month customers sign up for a subscription. After the first month, the price will increase to $99.
That’s significantly less than the $149 for which Novo Nordisk sells a starting dose on its direct-to-consumer website NovoCare.
Hims & Hers shares have been volatile over the past year.
Hims is launching its pill even though semaglutide has patent protection in the US until 2032.
The telehealth firm’s business flourished when it began selling compounded semaglutide in an injectable format, exploiting a loophole in U.S. legislation that allows competitors to sell a drug protected by intellectual property laws if the drug is in short supply.
In the early days of the Wevovy vaccine, demand significantly outpaced supply, but Novo Nordisk has since invested heavily in production capacity and resolved supply issues. No deficiencies have been reported for the pill version.
Hims says their version is “personalized” in terms of dosage and therefore legal. Novo said the action was illegal and posed a risk to patient safety.
“This is another example of Hims & Hers’ historic behavior to deceive the American public with counterfeit GLP-1 products, and the FDA has previously warned them about deceptive advertising of GLP-1 knockoffs,” Novo said in a statement Thursday. he said.
Hims is a volatile stock that is inherently tied to its ability to sell weight loss pills like Wegovy knockoffs. Shares reached a high of $69 and a low of $21 in the last 12 months.
Leerink Partners analyst Michael Cherny, who rates Hims shares on “Market Perform,” suggested the telehealth provider may also consider launching knockoff versions. Eli Lilly weight loss drugs. Lilly did not respond to CNBC’s request for comment.
Meanwhile, Barclays analyst James Gordon said the $49 Wegovy copy is a “new concern” for Novo.
“While compounded alternatives may attract cost-sensitive patients in the near term, questions remain about their regulatory sustainability and clinical consistency,” he added.
