Novo Nordisk (NVO) Stock: Legal Battle Looms Over $49 Wegovy Copycat

TLDR

• Novo Nordisk stock plunged 7% Thursday after Hims & Hers unveiled a $49 compounded version of Wegovy pills, undercutting Novo’s $149 price
• The Danish drugmaker immediately threatened legal action, calling it “illegal mass compounding” that risks patient safety
• Eli Lilly shares also dropped 7% on concerns about competition in the weight loss drug market
• Hims & Hers defends its product as “personalized” compounding, claiming a different formulation makes it legal despite semaglutide patents lasting until 2032
• Novo Nordisk has lost 50% of its value in 2025 and is down another 15% in 2026 after projecting sales declines up to 13% this year

Novo Nordisk shares dropped 7% Thursday after telehealth company Hims & Hers announced a $49 compounded version of the Wegovy weight loss pill. The move immediately drew threats of legal action from the Danish pharmaceutical giant.

Hims & Hers said customers could access the copycat pill for $49 in the first month, then $99 monthly with a five-month commitment. Novo charges $149 for its branded version.

The announcement also hit Eli Lilly, which saw shares fall 7% on fears of increased competition. Hims stock initially spiked but retreated after Novo’s legal threats.

Novo Nordisk A/S, NVO

Novo issued a sharp statement calling the launch “illegal mass compounding that poses a risk to patient safety.” The company pledged to pursue legal and regulatory action to defend its intellectual property.

Patent Protection Dispute

Semaglutide enjoys patent protection in the United States until 2032. Hims argues its version is legal because it qualifies as personalized compounding.

The telehealth provider claims its product uses a different formulation and delivery system than FDA-approved oral semaglutide. Hims already offered compounded injectable semaglutide and is now expanding to pills.

Novo manufactures Wegovy pills using proprietary SNAC technology, which enhances absorption when taken orally. Questions remain about how Hims’ formulation achieves similar effectiveness.

The companies previously partnered in 2025 to provide discounted weight loss injections. Novo terminated the partnership after two months, citing Hims’ “deceptive” marketing practices.

Mounting Troubles for Novo

This latest challenge compounds a difficult period for Novo Nordisk. The stock collapsed nearly 50% during 2025, the company’s worst year on record.

Shares have fallen an additional 15% so far in 2026. Investor confidence has eroded over doubts about Novo’s ability to sustain revenue growth against rising competition.

Last week, Novo projected 2026 sales and profits would decline between 5% and 13%. The company attributed the forecast to pricing pressure in the U.S. and expiring patent protection in Canada and China.

CEO Mike Doustdar reported 170,000 patients were taking the Wegovy pill since its January launch. He characterized the weak outlook as necessary short-term sacrifice.

Competition Heats Up

Eli Lilly expects to launch its competing weight loss pill, orforglipron, during the first half of 2026 pending FDA approval. The company projects 25% sales growth this year, contrasting sharply with Novo’s declining forecast.

Leerink analyst Michael Cherny suggested Hims should consider similar launches for future weight loss products as the market develops.

Eli Lilly declined to comment on the Hims announcement. Novo’s Wegovy pill launched in early January 2026 in the United States.

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