novo nordisk Dropped lawsuit against telemedicine provider him and her The two companies are fighting over patent infringement after Hims agreed to sell Novo’s branded drugs through its platform.
Novo Nordisk CEO Mike Doesder told CNBC’s Charlotte Reid on Monday: “We have decided to withdraw from the current legal proceedings, and of course we are prepared to return to the legal proceedings if necessary, but we do not foresee that happening.”
Under the agreement, Hims will offer injectable and oral semaglutide, sold as Ozempic and Wigovy, at the same prices as other telemedicine platforms, and Hims will no longer advertise the combination GLP-1 drug on its platform or marketing, the companies said in a statement Monday.
Hims shares soared more than 40% in morning trading, while Novo’s Copenhagen-listed shares rose 2.1%. Pan-European blue chip index Stocks 600 was trading 1% lower. S&P500 It fell by 0.6%.
In February, Novo announced that it was suing Hims for “large-scale illegal compounding” after the company announced it would sell counterfeit Wigovy tablets for $49. That’s about $100 less than Novo sells its branded pills through its direct-to-consumer platform, Novocare.
He quickly discontinued the pill after pushback from both Novo and the U.S. Food and Drug Administration. The FDA pledged to take “decisive action” to restrict the pharmacy’s operations and refer Hims to the Department of Justice for possible violations of federal law.
FDA Commissioner Marty McCulley said he is pleased that Hims will stop advertising unapproved compounded drugs and instead sell FDA-approved products through its agreement with Novo.
“Importantly, they keep them affordable (no price increases) and limit compounded GLP-1 to rare (FDA-compliant) cases,” McCurry wrote in a post on X.
Hims has made huge profits selling counterfeit versions of blockbuster weight-loss drugs, taking advantage of a loophole in U.S. regulations that allows companies other than the patent holder to sell drugs if there is a shortage.
Semaglutide was in short supply in the drug’s early years, but Novo has since resolved supply constraints as it ramps up manufacturing. However, Hims continued to sell counterfeit versions of the drug, claiming that the copies were “for personal use” and therefore legal.
Semaglutide’s patent will be protected in the US until 2032.
Last year, Novo and Hims teamed up to offer the telemedicine company’s customers a discounted weight-loss jab. Novo ended the partnership just two months later, saying Hims had engaged in “deceptive” marketing that jeopardized patient safety.
“The situation is very different from the last time we did this,” Dusdahl told CNBC.
“Upon receipt of our product, Hims & Hers has agreed not to advertise, promote or sell the compounded product to the public,” he said, adding that Hims has now agreed to change its business model to reserve the compounded version “only in rare cases where it is needed.”
Novo Nordisk’s ADR and Hims stock prices are volatile.
Novo currently has more than 600,000 Wegovy pill scripts, Doustdar said.
Dusdahl acknowledged that when Wegovy tablets were launched in January, there were question marks, “a little fueled by competitors”, that certain dietary restrictions could limit the tablet’s intake.
“Now, I have to inform you that this is simply not true,” he said. “People are very interested because this is the most effective drug on the market right now.”
Hims said in a statement that existing patients on semaglutide “will be given the opportunity to transition to an FDA-approved drug if their healthcare provider deems it clinically appropriate.”
In a conversation with CNBC’s Brandon Gomez, Hims CEO Andrew Dadum highlighted the rapidly changing landscape of anti-obesity drugs.
“Demand will continue to accelerate with the new assortments that are coming out,” he said. “This assortment has historically addressed all the needs of affordability, personalization and form factors that didn’t exist just six months ago or 12 months ago.”
Himes added that the company is in talks with anyone who can bring new treatments to the platform, “whether it’s an established biotech or an established large pharmaceutical company.”
zepp bound maker Eli Lilly plans to launch a rival weight-loss drug called Orforglipron in the second quarter, pending FDA approval.
