HIMS & JI (HIMS) shares fell almost 35% on Monday after Novo Nordisk (NGO) announced that it is completing cooperation to produce his BlockBuster weight loss drug Wegovy, available on the Him Telehealth platform.
Novo Nordisk said Hims & He had violated law and continued to sell Copycat Semaglutide, the main ingredient of Wegovy, along with Novo’s branded drugs.
“Hims & her … failed to comply with the laws prohibiting the massive sale of composite drugs in the form of a false” personalization “,” Novo said in a statement. Novo’s shares lost about 5.5%.
HIMS and its refusal to respond to the Yahoo Finance request, but CEO Andrew Dudumas announced X a few hours later, claiming that the Novo commercial team presses it to “direct patients to Wegovy.”
“We refuse to be strongly armed with the anti-competitive requirements of any pharmaceutical company that violates independent decision-making decisions and limit the patient’s choice,” Dudum said in a statement.
The duo announced a collaboration last month, which will allow patients to directly acquire Wegovy through the HIMS remote health platform. The agreement was in line with the growing trend of pharmaceutical companies, including Novo competitor Eli Lilly (LLY) to fill the access gap after Copycat or complex, GLP-1 was forced to the market.
Sophisticated drugs were available when Lilly and Novo tried to make enough of their own GLP-1 to satisfy the unexpected and unprecedented demand spike in weight loss market. The Food and Drug Administration (FDA) allows you to sell copy cats when the drug is missing without complying with the same testing requirements as brand drugs.
Since the lack of medicines of both companies, some composite pharmacies have continued to produce copies, mainly Novo Semaglutide. They intend to continue and are allowed to do so for a gap that allows patients to use a “individualized” medicine if they need to adjust the branded product for reasons such as tolerance or allergy.
Lilly also faces how to control some remote health platforms, which continue to offer compound products, including Novo Nordisk, which Lilly has included in its concerns.
Hims & her did not immediately respond to the request to comment.
In addition to the latest shares in the company, investors hope that Him and they will grow in a slower clip than in the last past.
Hims drove to the highlands (and sometimes unstable swings) in the GLP-1 news, especially when it is related to the availability of Copycat medicines. According to Allen Lutz, an analyst at Bank of America, this also shows the weakness of its total remote health platform subscriptions.