Novo Nordisk (NYSE:NVO) rallied strongly on Monday after telehealth provider Hims Hers Health (NYSE:HIMS) withdrew its recently launched $49 compounded weight-loss pill over the weekend, following pushback from Novo Nordisk and the U.S. Food and Drug Administration.
Novo Nordisk shares climbed more than 8% in Copenhagen trading by 04:48 ET (09:48 GMT), while its U.S.-listed stock was up about 6.5% in premarket action. In contrast, Hims Hers shares fell sharply, dropping around 14% before the opening bell.
Hims had introduced the pill last Thursday using semaglutide, the active ingredient in Novo’s blockbuster obesity and diabetes treatments Wegovy and Ozempic. The launch quickly drew objections from both Novo Nordisk and regulators. By Saturday, Hims said it would halt the product after holding “constructive conversations with stakeholders.”
Novo’s shares had already risen more than 5% on Friday after FDA Commissioner Marty Makary signalled that the agency would step up scrutiny of unauthorised compounded GLP-1 drugs, which have weighed on Novo’s pricing power in the obesity and diabetes markets.
The FDA said it plans to restrict the use of GLP-1 ingredients in non-approved compounded medicines marketed as alternatives to authorised treatments, citing quality and safety risks as well as potential violations of federal law. Novo later confirmed it would pursue legal action against Hims over its efforts to sell compounded versions of the drug.
“The plans to launch compounded Oral Wegovy in the U.S., at only $49/mo had raised some initial concerns,” Barclays analyst James Gordon wrote in a note. A spokesperson for Eli Lilly (NYSE:LLY) said the company also welcomed the FDA’s move.
The rebound in Novo’s share price comes after a sharp selloff last week, when roughly $50 billion was wiped from the Danish drugmaker’s market capitalisation. The company had warned that “unprecedented” pricing pressure would significantly weigh on sales and profits this year.
Novo stunned investors by forecasting that both revenue and earnings could fall by as much as 13% in 2026, ending a long streak of double-digit growth. The outlook reflects intensifying competition in the high-margin obesity market as U.S. President Donald Trump pushes to lower drug prices.
Novo has also been losing momentum to Eli Lilly, which has taken the lead in U.S. prescription trends and earlier this week projected 2026 profit above Wall Street expectations. Despite Monday’s bounce, Novo shares are still down roughly 2% since the start of the year.