New York, February 6, 2026, 15:41 (EST) — Regular session
Shares of Hims & Hers Health fell roughly 2.6% to $22.88 Friday afternoon, after ranging from $20.95 to $23.61 earlier in the session. That marks the third straight session in the red, following the company’s move to roll out a $49 compounded alternative to Novo Nordisk’s Wegovy weight-loss pill. 1
Hims’s entry has thrown it straight into the thick of the U.S. cash-pay obesity drug market, a sector where branded drug companies are fighting to hold the line on both pricing and patents as compounded alternatives gain traction. “Until this issue is resolved, it adds another level of uncertainty,” said Markus Manns, portfolio manager at Union Investment, which owns shares of both Novo and Lilly. 2
Pharmacies blend ingredients for custom medications through compounding, a practice that lands in a regulatory grey area, especially during shortages. GLP-1 drugs—glucagon-like peptide-1—have turned into a high-stakes fight in healthcare, leaving stocks sensitive to any shifts in legal and regulatory signals.
Hims announced that providers on its platform now have the option to prescribe a compounded semaglutide pill for customers who qualify, with an entry-level plan priced at $49 for the first month. “We’re committed to … put the power of choice back,” CEO Andrew Dudum said. Dr. Craig Primack added, the goal is to equip providers with a “robust toolkit” for more personalized care. 3
Novo Nordisk plans to sue, blasting Hims’ “illegal mass compounding” and warning it “poses a significant risk to patient safety.” The company also pointed out it remains the sole maker of an FDA-approved Wegovy pill using SNAC, a technology that helps semaglutide absorb when taken by mouth. 4
U.S. FDA Commissioner Marty Makary warned Thursday the agency is ready to move fast on companies selling “illegal copycat drugs,” stressing the FDA can’t guarantee the quality, safety, or effectiveness of any unapproved products. Hims shares tumbled in after-hours trading following Makary’s comments. 5
Speaking in London, Novo CEO Mike Doustdar told investors that customers spending $49 on the pill are “wasting $49”—he argued it won’t be absorbed as intended. Hims, for its part, told Reuters the pill relies on “liposomal technology” to aid absorption, but didn’t elaborate. 6
Wild action in the stock has grabbed attention. Hims surged up to 14% at the open on Thursday, only to end the session in the red. About a third of its shares are out on loan for short selling, according to LSEG—traders are betting there’s more room to fall. 7
For some analysts, the real issue is figuring out exactly where regulators decide to step in. “A compounder can create a copycat version … with some kind of minor tweak,” said Michael Nedelcovych, analyst at TD Cowen. Karen Andersen at Morningstar pointed out that unless Novo’s absorption technology is used, the pill “will not be effective”—but including it brings the risk of hitting “a legal red line.” 8
Drugmakers have been caught in the crossfire too. Novo’s U.S.-listed shares jumped roughly 9.6% on Friday; Eli Lilly added about 3.5%.
Still, there’s a big catch with the cheap, compounded weight-loss drugs: Hims is relying on pharmacy rules that allow for customized versions, but regulators are starting to crack down on broad marketing pushes. Any move toward stricter enforcement or a ramp-up in lawsuits could quickly shift this new pill from a catalyst for growth to a major headache. 9
Two timers ticking for traders—Novo could file its lawsuit any moment, and then there’s the FDA’s decision on compounded drugs waiting in the wings. Out in the market, options are pricing in a roughly 20% swing by the Feb. 13 close.
