COPENHAGEN, Feb 9 (Reuters) - Novo Nordisk's Frankfurt-listed shares rose 4.5% on Monday after telehealth firm Hims & Hers reversed its launch of a $49 compounded weight-loss pill over the weekend, following legal threats from Novo and the U.S. Food and Drug Administration.
FILE PHOTO: The logo of pharmaceutical company Novo Nordisk is displayed in front of its offices in Bagsvaerd
Hims had introduced the pill on Thursday last week, based on semaglutide—a key ingredient in Novo's blockbuster drugs Wegovy and Ozempic—sparking pushback from the Danish drugmaker and regulatory authorities. On Saturday, Hims said it would stop offering the treatment after holding "constructive conversations with stakeholders."
Novo Nordisk's shares had already rebounded over 5% on Friday after FDA Commissioner Marty Makary signaled a crackdown on unauthorized compounded GLP-1 medications, which have challenged the drugmaker's pricing power in the weight-loss and diabetes markets.
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Despite the latest gains, Novo remains under considerable pressure as it faces competition from Eli Lilly and cheaper compounded alternatives. Novo flagged "unprecedented price pressure" at its full-year earnings last week, triggering a 17% stock plunge.
Novo Nordisk's market value peaked in June 2024 but it has since shed nearly two-thirds of its value.
(Reporting by Stine Jacobsen in Copenhagen, Editing by Louise Heavens)