Novo Nordisk stock jumps 8% after Hims & Hers pulls copycat Wegovy pill

Stock Rise for Novo Nordisk

Novo Nordisk, manufacturer of the popular weight-loss drug Wegovy, experienced a significant increase in its stock price on Monday. This followed the announcement by Hims & Hers, a telehealth provider, that they would cease selling a cheaper, copycat version of the drug.

The FDA had previously threatened legal action against Hims & Hers for their plans to market this unapproved product, which was priced at $49, significantly lower than Wegovy's price. The company later reversed its decision, citing concerns over patient safety and regulatory issues.

Novo Nordisk has been working to expand its manufacturing capabilities to address past supply shortages. The company also highlighted the competitive pressures it faces from other firms like Eli Lilly, whose shares dropped on Thursday as well.

The FDA is taking steps to crack down on compounding pharmacies selling non-FDA approved drugs, emphasizing the importance of verified drug quality and safety.