Hims & Hers will get to sell Ozempic. Like, real Ozempic. The stock soars 50%
Novo Nordisk and Hims had clashed on and off for months as the telehealth firm marketed compounded versions of Novo's blockbuster GLP-1 drug Wegovy
Jens Kalaene/picture alliance via Getty Images
Hims & Hers and the Danish pharma giant Novo Nordisk have ended a bitter legal feud that will allow the telehealth company to sell Novo's brand name weight loss drugs, sending Hims & Hers stock rocketing more than 50%.
The companies had clashed on and off for months as Hims & Hers marketed compounded versions of Novo Nordisk's blockbuster GLP-1 drug Wegovy. Novo sued Hims & Hers for patent infringement last month, saying the online site was selling cheaper, unapproved copies of Wegovy.
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But in statements early Monday, the companies said Hims & Hers would soon sell brand name Wegovy and Novo Nordisk's other GLP-1 Ozempic on its platform later this month.
Hims & Hers soared as much as 52% in pre-market trading.
“We see tremendous growth opportunities in the U.S. with the expanding assortment of branded GLP-1 medications,” Hims & Hers CEO Andrew Dudum said in a statement. “I’m excited to have a great partner in Novo Nordisk as we work to create a new model that works for everyday people. This collaboration reflects what’s possible globally when drugmakers, biotech companies, and diagnostic leaders partner with consumer platforms to support scaled distribution of their latest medical innovations.”
The companies both said that Hims & Hers would no longer sell compounded versions of the drug, and that Novo Nordisk was dropping its lawsuit as part of the deal.
“We welcome Hims & Hers shifting their GLP-1 business model to focus on increasing access to affordable, branded FDA-approved medicines,” Novo Nordisk said in a statement. “Hims & Hers will no longer advertise compounded GLP-1 offerings on its platform or in its marketing, and existing patients will have the opportunity to transition to FDA-approved alternatives when clinically appropriate in consultation with a healthcare professional.”
Last June, Novo Nordisk said it was ending a previous partnership with Hims & Hers, accusing the telehealth company of "deceptive promotion and selling of illegitimate, knockoff versions" of Wegovy. That sent Hims & Hers stock tumbling.
Novo Nordisk kicked off the weight loss drug boom with Ozempic and Wegovy, but has since lost ground to Eli Lilly $LLY.