Novo Nordisk will begin offering its popular obesity drugs on Hims & Hers’ telehealth platform, ending a messy dispute that resulted in a lawsuit and a crackdown by U.S. drug regulators.
Under a deal announced Monday, Hims will provide access to Novo’s GLP-1 medicines — the diabetes drug Ozempic and the injectable and pill forms of the weight loss therapy Wegovy — to U.S. consumers at the same prices as other telehealth firms. Hims will no longer promote “compounded” versions of GLP-1 drugs on its website or in advertisements, and will give existing patients the chance to switch to “FDA-approved alternatives,” according to a statement from Novo.
Novo will, as a result, dismiss its patent infringement lawsuit against Hims while “reserving the right to refile in the future.” News of the deal was first reported by Bloomberg.
“This agreement with Hims & Hers is a meaningful win for patients in the United States,” said Novo CEO Mike Doustdar in a statement. “By expanding access through leading telehealth providers and digital care platforms, we are helping to connect more people with our FDA-approved medicines, which have been evaluated for safety and efficacy.”
The news represents an about-face for Hims, which had, to this point, been taking an adversarial stance against the makers of branded weight loss medicines.
Hims is one of many telehealth firms that have recently used legal loopholes to capitalize on the demand for GLP-1 weight loss drugs. These firms started making lower-cost, compounded versions of Novo’s injectable Wegovy and Eli Lilly’s rival Zepbound when those medicines were in short supply. But despite lawsuits and warnings from the FDA, those efforts have continued even after the end of those shortages, as compounders have used methods of personalizing treatment regimens to try to comply with federal laws.
Hims stepped up those plans last month, when it revealed plans to launch a compounded version of the pill form of Wegovy. The FDA approved Novo’s drug in December, making it the first pill of its kind available for obesity. And since then, early prescription totals suggest it’s gotten off to a very fast start. That progress is important for Novo, which has seen its market share eroded by compounders, pricing pressure and competition from Lilly.
Hims attempted to quickly undercut Novo by selling a knockoff at a lower price. In doing so, Hims claimed that its copycat of oral semaglutide — the active ingredient in Wegovy — was formulated differently and involves a different delivery method to protect it during digestion. Some Wall Street analysts expressed skepticism about those claims, as Novo uses a specialized technology to ensure the effectiveness of its pill, which is a complex “peptide” drug instead of a standard small molecule.
The move immediately spurred backlash from federal regulators and a lawsuit from Novo, prompting Hims to abandon the effort within days. It’s now completely changed course, revealing in its own statement that the Novo deal is “part of a new strategy” that’s based on providing U.S. customers with access to a “broad assortment” of FDA-approved counterparts. Compounded versions would only be offered if a clinician determines it’s “clinically necessary,” Hims said.
Hims, for its part, said the decision is a result of industry progress in making branded GLP-1 medicines “available at more affordable prices,” which has upped demand.
“We see tremendous growth opportunities in the U.S. with the expanding assortment of branded GLP-1 medications,” said co-founder and CEO Andrew Dudum in the company's statement.
Hims shares climbed more than 40% in early trading Monday.
