Key Highlights
- Novo Nordisk and Hims & Hers are launching a partnership to distribute obesity medications through the telehealth platform
- After-hours trading saw Hims stock climb 39% following the announcement
- The partnership resolves ongoing litigation, including a patent infringement case Novo filed recently
- Novo had previously cancelled an initial agreement with Hims due to concerns about promotional methods and compounded medication offerings
- The FDA had warned Hims about potential enforcement action regarding its $49 compounded semaglutide product
Novo Nordisk and Hims & Hers are joining forces to distribute obesity medications via Hims’ telehealth platform, bringing an end to their legal conflict that had recently intensified with patent litigation.
Bloomberg News broke the story Friday, referencing an individual with knowledge of the agreement. Following the report, Hims shares climbed 39% during after-hours trading.
The companies plan to issue an official statement potentially by Monday. Details regarding financial terms remain undisclosed.
Resolving Recent Tensions
The shift in relationship is remarkable. Last month, Novo initiated patent infringement litigation against Hims following the telehealth company’s launch and subsequent withdrawal of a $49 compounded version of Novo’s obesity medication.
The U.S. Food and Drug Administration had issued warnings about possible enforcement measures against Hims regarding its compounded semaglutide sales, the active component in Wegovy and Ozempic.
Between regulatory scrutiny and Novo’s legal action, Hims faced mounting challenges in recent weeks.
The two organizations previously attempted collaboration. Novo terminated their initial partnership last year, expressing concerns about Hims’ promotional approaches and ongoing distribution of alternative Wegovy formulations.
The current agreement marks a renewed effort at working together, seemingly with mutually acceptable conditions.
Strategic Implications for Each Company
For Novo, this partnership creates an additional avenue for distributing its branded weight-loss medications amid growing competition in the obesity treatment market.
A Novo spokesperson indicated the company is “always in conversation with companies that can help improve patient access to FDA-approved medicines.” This represents the extent of Novo’s public commentary.
Hims has yet to provide a statement regarding the partnership.
For Hims, this agreement signals a strategic shift. The company had been emphasizing compounded semaglutide as an affordable alternative to Novo’s branded products.
This approach encountered obstacles when the FDA removed semaglutide from its shortage list earlier this year, eliminating the regulatory justification for compounding pharmacies to continue production.
Current Market Status
Hims stock climbed 39% during Friday’s after-hours session. Throughout standard trading hours, both NVO and HIMS experienced declines — NVO fell 1.25% while HIMS dropped 0.88%.
The companies are anticipated to make their formal announcement by Monday, March 9.
