Hims & Hers shares surge on partnership with Novo Nordisk
About a month after Novo Nordisk sued rival Hims & Hers Health, Inc. (HIMS) for patent infringement, the two companies said in a stunning announcement on Monday that they have now entered into a partnership together.
Under the agreement, Hims & Hers will offer Novo Nordisk's Ozempic injection weight-loss solution and its Wegovy weight-loss tablets, for the "same affordable self-pay prices as other telehealth platforms."
Novo said in a press release announcing the partnership that it welcomes "Hims & Hers shifting their GLP-1 business model to focus on increasing access to affordable, branded FDA-approved medicines."
“This agreement with Hims & Hers is a meaningful win for patients in the United States," Novo president and CEO Mike Doustdar said 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."
HIMS shares surged over 40% on Monday following the announcement of the partnership.
“We see tremendous growth opportunities in the US with the expanding assortment of branded GLP-1 medications,” Hims co-founder and CEO Andrew Dudum said in a statement. “I’m excited to have a great partner in Novo Nordisk as we work to create a new model that works for everyday people.
"This collaboration reflects what’s possible globally when drugmakers, biotech companies, and diagnostic leaders partner with consumer platforms to support scaled distribution of their latest medical innovations.”
Novo filed a lawsuit against Hims last month after its rival released a copycat version of its Wegovy tablet. Novo accused Hims of "duping consumers and healthcare professionals as to the clinical benefits and safety of these unapproved drugs."
Novo's Wegovy pill has a starting price of $149, while Hims' copycat pill was priced at $49.
Two days before Novo filed its lawsuit, Hims said that it was pulling its compounded semaglutide pill from the market.
"Since launching the compounded semaglutide pill on our platform, we’ve had constructive conversations with stakeholders across the industry," the company said in a post on X. "As a result, we have decided to stop offering access to this treatment. We remain committed to the millions of Americans who depend on us for access to safe, affordable, and personalized care."
Novo moved forward with its suit even though Hims had pulled its copycat pill from the market.
Under the new agreement between the two companies, Hims "will no longer advertise compounded GLP-1 offerings on its platform or in its marketing, and existing patients will have the opportunity to transition to FDA-approved alternatives when clinically appropriate in consultation with a healthcare professional."
Meanwhile, Novo said that it will be dismissing the patent infringement lawsuit against Hims.
Financial terms of the agreement were not disclosed.
Hims had been facing mounting pressure from the Food and Drug Administration (FDA) over its marketing around its copycat weight-loss drugs.
After Novo had first threatened to sue Hims, the FDA released a statement announcing its plans "to take decisive steps to restrict GLP-1 active pharmaceutical ingredients (APIs) intended for use in non-FDA-approved compounded drugs that are being mass-marketed by companies — including Hims & Hers and other compounding pharmacies — as similar alternatives to FDA-approved drugs."
Shares of Novo gained more than 3% on Monday.