Novo Nordisk (NVO) Stock Drops as Legal War Erupts Over $49 Wegovy Knockoff

TLDR

• Novo Nordisk shares fell 7% Thursday when Hims & Hers introduced a $49 compounded Wegovy pill, compared to Novo’s $149 branded version
• The Danish pharmaceutical company plans legal action, labeling the product “illegal mass compounding” that threatens patient safety
• Eli Lilly stock also declined 7% as investors worried about increased market competition for weight loss medications
• Hims & Hers argues its compounded version is legal as a “personalized” treatment with different formulation, despite semaglutide patents running through 2032
• Novo’s stock has crashed 50% in 2025 and dropped another 15% in 2026 following guidance predicting sales declines between 5% and 13%

Novo Nordisk experienced a 7% stock decline Thursday following Hims & Hers’ announcement of a $49 compounded Wegovy weight loss pill. The Danish drugmaker swiftly responded with plans for legal action.

Novo Nordisk A/S, NVO

The telehealth platform priced its alternative at $49 for the initial month and $99 monthly thereafter with a five-month plan. This represents a substantial discount from Novo’s $149 branded pill price.

Eli Lilly shares tumbled 7% alongside Novo on competitive concerns. Hims stock briefly rallied before retreating after legal threats emerged.

Novo condemned the launch as “illegal mass compounding that poses a risk to patient safety.” The company vowed to pursue legal and regulatory measures to protect its patents and the drug approval process.

Compounding Controversy

Semaglutide maintains U.S. patent protection through 2032. Hims contends its version qualifies as legal personalized compounding.

The company states its compounded product employs a different formulation and delivery mechanism than FDA-approved oral semaglutide. Hims previously sold compounded injectable semaglutide and now offers pills.

Novo produces Wegovy pills using specialized SNAC technology to facilitate oral absorption. The effectiveness of Hims’ alternative formulation remains uncertain.

The two companies briefly collaborated in 2025 on discounted weight loss shots. Novo severed the partnership within two months, accusing Hims of “deceptive” marketing.

Novo Faces Headwinds

The dispute intensifies pressure on Novo Nordisk during a challenging stretch. Shares plummeted nearly 50% throughout 2025, marking the company’s worst annual performance.

The stock has dropped an additional 15% in 2026 year-to-date. Investors question Novo’s capacity to maintain revenue growth against strengthening competition.

Novo forecasted last week that 2026 sales and profits would fall 5% to 13%. The company cited U.S. pricing challenges and patent expiration in markets including Canada and China.

CEO Mike Doustdar noted 170,000 patients started taking Wegovy pills since the January rollout. He framed the pessimistic outlook as temporary pain for future benefit.

Market Dynamics Shift

Eli Lilly plans to introduce its weight loss pill, orforglipron, in the first half of 2026 subject to FDA clearance. The company anticipates 25% sales growth this year, contrasting with Novo’s negative projection.

Leerink analyst Michael Cherny noted Hims should explore similar opportunities for upcoming weight loss medications as the market expands.

Eli Lilly did not provide comment on the Hims development. Novo launched its Wegovy pill in the United States during early January 2026.

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