Telehealth company Hims & Hers $HIMS ( ▼ 3.77% ) is rolling out a much cheaper version of Novo Nordisk’s $NVO ( ▼ 8.16% ) Wegovy pill, setting up what could become one of the most aggressive showdowns yet in the booming weight-loss drug market.
Hims announced it will sell a compounded version of the oral GLP-1 for $49 for the first month, then $99 per month after that. Buying the branded version directly from Novo starts at $199. Novo did not take the news lightly, saying it plans to pursue legal and regulatory action to protect its patents and patient safety.
Investors immediately saw the ripple effects. Shares of Hims jumped early before reversing, while Novo slid further. Even Eli Lilly $LLY ( ▼ 7.79% ) , which is preparing to launch its own weight-loss pill later this year, fell as traders worried copycat competition could pressure the whole category.
A discount drug with big questions
Novo’s CEO did not mince words, saying buyers of the Hims version are “wasting $49.” The central issue is how the drug survives digestion. Novo’s pill uses a patented delivery method designed to protect the active ingredient so it can be absorbed. Hims says its version uses liposomal technology, but details remain thin.
Unlike branded drugs, compounded medications do not go through full FDA clinical trials for safety and effectiveness. Novo argues that mass compounding of GLP-1 drugs is risky and illegal. Hims says it is offering a more affordable alternative and accuses Novo of trying to scare patients away from lower-cost options.
Outside experts are skeptical. Some say it is much harder to fine-tune dosing with pills than injections, and that replicating Novo’s delivery system is far from simple. How well Hims’ version actually works may become the billion dollar question.
This fight did not start today
The two companies have history. During GLP-1 shortages in 2024, Hims and other telehealth firms began selling compounded copies of Novo’s injectable weight-loss drugs. Even after shortages eased, Hims kept selling what it calls personalized versions. Novo has sued smaller compounders and previously cut ties with Hims after accusing it of deceptive marketing.
Regulators have been slow to clamp down, leaving a gray zone that companies continue to exploit. Analysts say this cycle is familiar: big drugmakers complain, regulators take time, and telehealth firms rush to meet demand with cheaper alternatives.
That makes a renewed partnership between Hims and Novo, which executives hinted at late last year, look increasingly unlikely.
The GLP-1 gold rush gets crowded
Novo’s oral Wegovy is the first weight-loss pill in the GLP-1 class, and early demand has been strong, especially among people new to the category. But competition is rising fast. Eli Lilly is expected to launch its own pill soon, and now Hims is trying to undercut both on price.
For investors, the concern is not just who wins, but how much pricing power survives. If cheaper compounded versions gain traction, the sky-high margins that fueled the weight-loss drug boom could start to look less guaranteed.