Novo Nordisk (NVO) Stock Rallies as FDA Forces Hims to Scrap Weight-Loss Pill

TLDR Novo Nordisk stock surged 8% Monday after Hims & Hers withdrew its $49 weight-loss pill under FDA pressure FDA announced plans to restrict compounded GLP-1 drugs, boosting Novo’s competitive position Hims & Hers stock dropped 14.8% in premarket trading following the product cancellation Novo’s market value has fallen nearly two-thirds since June 2024 due to intense pricing competition Analysts view FDA’s crackdown as positive for both Novo Nordisk and Eli Lilly Novo Nordisk shares rallied over 8% in Copenhagen trading Monday after Hims & Hers Health scrapped its $49 weight-loss pill launch. The telehealth company reversed course following legal threats from Novo and regulatory pressure from the FDA. Novo Nordisk A/S, NVO The stock surge pushed Novo’s shares above levels seen before Hims announced its compounded version of semaglutide. Investors viewed the FDA’s intervention as a signal of broader enforcement against compounded GLP-1 medications. Hims & Hers had introduced the pill Thursday using semaglutide, the same ingredient found in Novo’s Wegovy and Ozempic. The launch immediately drew opposition from both Novo Nordisk and federal regulators. By Saturday, Hims announced it would discontinue the product after holding discussions with stakeholders. The company’s stock plunged 14.8% in premarket trading Monday. FDA Takes Aim at Compounded GLP-1 Market The FDA said Friday it would restrict GLP-1 ingredients used in non-approved compounded drugs. These products have been sold by telehealth companies and compounding pharmacies as budget-friendly alternatives to authorized treatments. FDA Commissioner Marty Makary indicated the agency would strengthen oversight of unauthorized compounded GLP-1 medications. The regulator cited quality concerns, safety issues, and potential violations of federal law. Sydbank analyst Soren Lontoft Hansen said the FDA is targeting compounded GLP-1 drugs broadly, not just Hims’ specific product. This regulatory stance benefits both...