Novo Nordisk’s stock is rising rapidly as Hims & Hers abandons its copycat drug.
Shares of Danish pharmaceutical company Novo Nordisk jumped more than eight percent at the market open on Monday, after the U.S. company Hims & Hers announced over the weekend that it would stop selling its compounded weight-loss drug. The news came after the U.S. Food and Drug Administration announced it would take action against compounded weight-loss drugs.
Last week, Novo Nordisk’s stock fell sharply after Hims & Hers said it would bring to market a pill containing the same active ingredient, semaglutide, as the Danish pharmaceutical giant Novo Nordisk’s weight-loss drug Wegovy. Hims & Hers has now abandoned this plan.
In December, Novo Nordisk received approval from the U.S. Food and Drug Administration (FDA) for oral Wegovy. It was launched in the United States in early January.
Hims & Hers’ compounded drug is not FDA-approved or evaluated.