New York, Feb 5, 2026, 20:01 EST — Market closed.
- Shares of Hims & Hers closed 3.8% lower, despite an initial spike sparked by a new low-cost weight-loss pill launch 1
- Novo Nordisk warned of potential legal moves as U.S. regulators signaled they might crack down on “illegal copycat” drugs 2
- Up next: any lawsuit filings or FDA updates, followed by Hims’ earnings release and conference call on Feb. 23 3
Hims & Hers Health shares ended Thursday at $23.48, slipping 3.8% after volatile trading tied to its shift toward a cheaper, compounded form of Novo Nordisk’s new Wegovy pill. 1
Why this matters now: Hims is ramping up its push into the GLP-1 weight-loss sector, where soaring demand is running into hurdles on price and availability. GLP-1 drugs, which imitate a gut hormone that regulates appetite and blood sugar, are among the fastest-growing medication classes.
The trade-off is clear. Slashing prices might attract new customers, but the company risks crossing the blurry line between “personalized” pharmacy compounding and mass marketing — a boundary that invites lawsuits and regulatory scrutiny.
Traders reacted fast. Hims shares jumped almost 14% early on, then slid back by the close. Novo and Eli Lilly dropped amid worries that cheaper rivals might squeeze their margins. Markus Manns from Union Investment labeled the move “illegal” but admitted it’s uncertain how quickly Novo or the FDA could intervene. 4
Hims announced it will start selling compounded versions of Novo’s Wegovy pill at an introductory rate of $49 per month, following clinical guidelines to customize treatment. Unlike branded drugs, “compounded” medications are pharmacy-mixed for specific dosing and aren’t subject to FDA approval. 5
Novo announced plans for legal action, labeling Hims’ move as “illegal mass compounding” and warning it poses serious patient safety risks. The company also stressed it’s the sole manufacturer of an FDA-approved Wegovy pill using SNAC technology, designed to enhance oral absorption. 2
Novo CEO Mike Doustdar brushed off the cheaper competitor, claiming anyone shelling out $49 for it is “wasting their money.” He pointed to Novo’s absorption technology as the key advantage behind their pill. 6
Regulatory pressure ramped up as the day wore on. FDA Commissioner Marty Makary warned the agency will move quickly against firms pushing “illegal copycat drugs,” stressing: “The FDA cannot verify the quality, safety, or effectiveness of non-approved drugs.” 7
A clear downside looms. Should Novo’s legal effort succeed swiftly, or the FDA clamp down on what it views as widespread compounding, Hims might have to alter or stop the offer — despite already pouring money into fulfillment and marketing.
Investors should mark their calendars: Hims plans to release its fourth-quarter and full-year 2025 results after the market closes on Feb. 23. The company will hold a conference call at 5 p.m. ET that day. 3
As Friday approaches and the new week looms, investors will be on the lookout for a formal suit from Novo, any FDA action, and whether early buzz around a pill format shifts expectations before Hims’ earnings report.
