Handshake and reconciliation! Novo Nordisk withdraws lawsuit, Wegovy officially launches on Hims & Hers platform

Novo Nordisk reaches a partnership agreement with U.S. telehealth company Hims & Hers Health, ending months of patent disputes.

According to Bloomberg, Novo Nordisk announced on Monday that it will sell its flagship products Ozempic and Wegovy to U.S. consumers through the Hims platform, including the popular Wegovy oral tablets, and will withdraw the patent infringement lawsuit filed last month. In exchange, Hims commits to cease promoting its generic GLP-1 drugs and will only continue offering combination formulations when deemed clinically necessary by a doctor.

Following the announcement, Hims stock surged over 49% intraday, marking its largest single-day gain in history; Novo Nordisk’s Copenhagen stock also rose over 2%.

FDA Commissioner Marty Makary called the agreement a “victory for the American people” on X (formerly Twitter), congratulating both sides on reaching a cooperation, while emphasizing that Hims will stop promoting unapproved combination drugs and restrict the use of generic GLP-1 drugs to special cases compliant with FDA regulations.

From Lawsuit to Partnership: Key Terms of the Agreement

Under the agreement, Hims will provide Ozempic and Wegovy injections and Wegovy oral tablets to U.S. consumers at Novo Nordisk’s cost price. Previously, Novo Nordisk significantly reduced the monthly price of its weight-loss drugs from about $1,000 to between $149 and $299.

CEO Mike Dousdar of Novo Nordisk stated that “pricing is central to this cooperation,” noting that “genuine drugs now cost very close to the combination formulations.” He revealed that within two months of the Wegovy oral tablet launch, over 600,000 prescriptions have been issued, and collaboration with online healthcare platforms is accelerating its adoption.

Hims will gradually phase out external marketing of its combination weight-loss products over the coming weeks and will offer new options to patients. CEO Andrew Dudum said that “this partnership reflects our strategic shift in the U.S. weight-loss business from generic GLP-1 drugs to FDA-approved branded products,” adding, “this is the direction we see for growth.”

Novo Nordisk stated that while withdrawing the lawsuit, it reserves the right to refile if necessary.

Background of the Dispute: Nine Months of Confrontation and Legal Battles

This is not the first attempt at cooperation between Novo Nordisk and Hims. Bloomberg reports that the two previously reached an agreement, but Novo Nordisk unilaterally terminated it in June last year, accusing Hims of “deceptive marketing” and failing to effectively curb large-scale promotion of generic weight-loss drugs.

Hims responded swiftly, claiming Novo Nordisk’s statements were misleading. Dudum stated at the time, “There’s no way we would compromise on this,” and accused the company of making “very inappropriate” demands. The breakdown of cooperation put pressure on Hims’ stock and cast a shadow over its weight-loss business prospects.

In February this year, Novo Nordisk filed a lawsuit against Hims for launching a generic Wegovy oral tablet. Even after Hims quickly removed the product under regulatory pressure, the lawsuit remained active. That same month, the FDA announced it would take strong action against companies aggressively marketing illegal generics, with Hims named among them.

Regulatory Pressure as a Key Driver for Settlement

The settlement comes amid a tightening regulatory environment. A week before the agreement, the FDA issued warnings to 30 telehealth companies, accusing them of misleading promotion of GLP-1 combination drugs, with some conflating combination products with approved medications.

Bloomberg reports that the U.S. Department of Health and Human Services referred Hims to the Department of Justice in February for investigation under criminal provisions of the Federal Food, Drug, and Cosmetic Act. Hims disclosed in its annual report last month that it received a letter from the SEC requesting documents related to statements and business dealings concerning Novo Nordisk’s combination drugs.

Market Competition: Dual Pressures on Novo Nordisk

This cooperation highlights the dual challenges facing Novo Nordisk in the U.S. market. On one hand, competition with Eli Lilly’s weight-loss drugs is intensifying, with the company’s stock down about 23% this year; on the other hand, internet healthcare companies like Hims are continuing to erode market share by selling low-cost combination formulations.

Hims’ platform has over 2.5 million subscribers and was one of many online healthcare companies that entered the market during the shortage of Novo Nordisk’s weight-loss injections. After the shortage ended, these companies should have ceased selling exact generics, but some adjusted doses or added ingredients to differentiate their products legally, allowing them to continue operating.

CEO Mike Dousdar personally participated in the negotiations. He said that after the previous breakdown, both sides invested more time in the details, “everyone has become more mature.”

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