Novo Nordisk has dismissed its patent infringement lawsuit against telehealth provider Hims & Hers, following an agreement that will see the pharmaceutical giant’s branded weight loss medications sold through the Hims platform.
The news sent shares of Hims & Hers Health Inc. soaring by more than 40% in Monday morning trading.
Under the terms of the newly announced deal, Hims will begin offering both oral and injectable versions of popular GLP-1 drugs, including Wegovy and Ozempic, on its platform later this month.
Crucially, Hims has also committed to ceasing all advertising for compounded GLP-1 drugs, both on its platform and in its marketing efforts.
The resolution comes after a period of contention. Early last month, Hims & Hers had announced plans to launch a more affordable, off-brand version of Wegovy, shortly after Novo Nordisk introduced its reformulated blockbuster medication.
At the time, Novo Nordisk had vowed legal action, labeling the proposed product “an unapproved, inauthentic, and untested knockoff” of semaglutide, the active ingredient in Wegovy.
However, Hims quickly reversed course, abandoning its plan to offer the cheaper, off-brand version just two days later. This decision followed a warning from the Food and Drug Administration (FDA) that it might restrict access to the ingredients necessary for creating compounded versions of popular weight-loss drugs.
The FDA typically permits specialty pharmacies to create compounded versions of brand-name drugs when they are in short supply.
The surging demand for GLP-1 drugs had previously driven companies like Hims into this multi-billion-dollar market, with many patients willing to pay out-of-pocket.
While the FDA declared in 2024 that GLP-1 drugs were no longer in shortage, which was expected to curtail compounding, companies like Hims continued to operate under an exception for customized patient prescriptions.
Despite the settlement, Novo Nordisk stated it reserves the right to refile its lawsuit in the future.
