Novo Nordisk's Class B shares closed at 295.50 Danish crowns in Copenhagen, marking a 5.3% gain on Friday. This recovery followed an announcement from Hims & Hers that it would stop offering a compounded oral version of the weight-loss drug Wegovy.
Regulatory Crackdown Sparks Market Volatility
The decision came after the U.S. Food and Drug Administration issued stronger warnings against such copycat medications. Novo Nordisk had previously condemned the Hims product as "illegal mass compounding" and threatened legal action, citing patient safety risks. The stock had fallen almost 8% on Thursday when Hims initially launched the $49 pill.
This episode highlights the regulatory grey area surrounding pharmacy compounding, where active ingredients are mixed to create tailored medications or address supply shortages. According to analysts, this practice has already impacted sales of Novo's injectable obesity treatments and raises broader questions about patent protection for consumer-facing pharmaceuticals.
Investors Await Regulatory Clarity
Market participants are now focused on whether regulators will take decisive action against similar products. FDA Commissioner Marty Makary pledged "swift action" against illegal knockoffs, though some analysts remain skeptical about aggressive enforcement based on historical precedent.
Novo Nordisk emphasized that its FDA-approved Wegovy pill, which uses proprietary SNAC technology for semaglutide absorption, remains fully available across all dosage strengths in the U.S. market. The company has promised to pursue both legal and regulatory measures to protect its intellectual property.
Trading resumes Monday with investors watching for any further regulatory developments or competitive responses. The situation underscores the ongoing tension between branded drug pricing and the emergence of lower-cost alternatives in the rapidly expanding obesity treatment sector.
