Rafael Enrique | SOPA Images | AP
in stock him and her fell on Friday following legal threats from novo nordisk.
The online teleheathing company announced plans on Thursday to launch a cheaper knock-off version of its product. Novo’s Novo took legal action after admitting to using weight loss drugs.
Hims’ shares soared as much as 15% in Thursday trading on the news, but quickly pared back their gains after Novo announced the action was “unlawful”, falling 3.8% to close at a 12-month low. Shares fell as much as 10% on Friday before offsetting losses. The stock had fallen about 2% in the previous session.
Hims has announced that it will be launching Wigoby-style tablets containing the same active ingredient, semaglutide, as the original brand for just $49 for the first month when customers sign up for a subscription. After the first month, the price increases to $99.
This is significantly lower than the $149 starting dose that Novo Nordisk sells on its direct-to-consumer website NovoCare.
Hims & Hers stock has been volatile over the past year.
Hims is trying to launch the pill even though semaglutide is patent protected in the US until 2032.
The telemedicine company’s business flourished when it began selling compounded semaglutide in an injectable form, taking advantage of a loophole in U.S. regulations that allows competitors to sell medicines protected by intellectual property laws when drugs are in short supply.
In the early days of Wevovy’s jab, demand significantly exceeded supply, but Novo Nordisk has since invested heavily in manufacturing capacity to resolve supply issues. No shortages have been reported for the tablet version.
Himes said that version is “individualized” in dosage and therefore legal. Novo claims this practice is illegal and a risk to patient safety.
“This is another example of Hims & Hers’ historic actions to deceive the American public with counterfeit GLP-1 products, and the FDA has previously warned Hims & Hers about deceptive advertising of counterfeit GLP-1 products,” Novo said in a statement Thursday.
Hims is a volatile stock, tied to its perceived ability to sell weight loss drugs that are essentially copies of Wegovy. Over the past 12 months, the stock has hit a high of $69 and a low of about $21.
Leerink Partners analyst Michael Cherney, who rates Hims stock with a “market perform” rating, said the telemedicine provider Eli Lilly’s weight loss drugs. Lilly did not respond to CNBC’s request for comment.
Meanwhile, Barclays analyst James Gordon said the $49 Wegovy copy was a “new concern” for Novo.
“While complex alternatives may attract cost-conscious patients in the short term, questions remain about their regulatory sustainability and clinical consistency,” he added.
