Hims Stock Under Pressure: Wegovy Lawsuit and the Future of Compounded Weight Loss Drugs
Millions of Americans are turning to telehealth companies like Hims & Hers for more affordable alternatives to popular weight-loss drugs such as Wegovy and Zepbound, often opting for compounded versions. These compounded drugs were initially intended as a temporary solution during shortages of the brand-name medications. However, despite the Food and Drug Administration (FDA) declaring the shortage over in 2025, telehealth companies continue to offer these compounded alternatives, often at a lower price point than pharmaceutical companies.
Novo Nordisk Sues Hims & Hers
Recently, Wegovy manufacturer Novo Nordisk filed a lawsuit against Hims & Hers, a move the telehealth provider labeled as a “blatant attack” on Americans who rely on these compounded medications. Approximately 1 in 8 Americans currently use a GLP-1 drug for weight loss, diabetes, or other health conditions, according to KFF, a health policy nonprofit. Many patients struggle to afford these medications, particularly those whose insurance plans don’t provide coverage.
While Novo Nordisk and Eli Lilly have reduced prices for cash-paying customers, options remain available through telehealth portals, retailers like Costco and Sam’s Club, and even TrumpRx, the Trump administration’s direct-to-consumer drug sales website. However, the future of these less expensive, compounded versions is now uncertain following Novo’s lawsuit and threats of enforcement action from federal drug regulators.
The FDA’s Stance and Potential Consequences
“We expect all compounders who are engaged in mass compounding to take note of this legal action,” stated John Kuckelman, Novo Nordisk’s group general counsel, to USA TODAY. “We expect all of them to take note of what could be the potential consequences of their continued behavior.”
Novo Nordisk initiated the lawsuit on February 9th, alleging patent infringement by Hims & Hers through the sale of compounded Wegovy versions. This action followed Hims & Hers’ announcement of plans to offer a compounded Wegovy at an introductory price of $49 per month. Subsequently, after the FDA threatened action, Hims & Hers withdrew those plans.
Novo Nordisk officials highlighted that Hims & Hers’ intention to launch a pill version of Wegovy was the final catalyst for the lawsuit. Unlike the injectable form, there was never a shortage of the Wegovy pill, rendering the compounded version unnecessary. Kuckelman emphasized, “There’s no excuse… it’s outrageous. It’s violating our patents and a direct challenge to the entire drug approval framework in the United States.”
Hims & Hers’ Response and Defense
Hims & Hers declined an interview but released a statement asserting that treating obesity requires “precision and personalization.” The company maintains its sales of injectable GLP-1 medications and serves approximately 2.5 million subscribers across its health offerings, with GLP-1 customers representing a small minority of its base.
“Restricted access, excessive costs, and a standardized approach are not prerequisites for high-quality care,” Hims & Hers stated. “Our rigorous, customer-first approach strips away the friction of traditional healthcare, putting the power of health ownership back where it belongs: with the consumer.”
The Rise of Oral Wegovy and Competition
Novo Nordisk is currently the sole company with FDA approval for a GLP-1 weight loss pill, granting it an exclusive market window. Howie Forman, director of the MD/MBA program at Yale School of Management, notes, “The oral version (of Wegovy) is a very hot sale opportunity for Novo Nordisk. Certainly, oral dosing is preferable to injections for an awful lot of people.”
During a recent investor call, Novo executives emphasized the importance of a rapid launch for its oral medications, reporting over 50,000 weekly prescriptions filled, with 90% of consumers paying with cash. The starting price for the Wegovy pill is $149, approximately $200 less than the injectable version.
However, this exclusivity won’t last forever. Eli Lilly’s weight-loss pill, orforglipron, is expected to gain FDA approval in April, potentially driving prices down further. Forman believes consumers are already benefiting from increased competition.
Price Reductions and Safety Concerns
Both Novo and Lilly have reduced prices for cash-paying customers. Lilly now offers a month’s supply of 2.5 mg single-dose vials of Zepbound for $299 (down from $349), while 5 mg vials cost $399. Novo has lowered the price of injectable Wegovy and most Ozempic dosages to $349 per month, down from $499, for direct purchases from the drugmaker, telehealth partners, or retail pharmacies.
The FDA has warned it will take “decisive steps” against companies mass-producing compounded GLP-1 drugs, citing concerns about quality, safety, and efficacy. The agency has also referred Hims & Hers to the Justice Department for potential violations of the Federal Food, Drug, and Cosmetic Act.
Novo Nordisk’s testing revealed impurities of up to 86% in compounded injectable Wegovy ingredients and up to 75% in compounded pill versions, highlighting potential safety risks.
The Future of Compounding Pharmacies
While compounding pharmacies can play a vital role in tailoring medications for patients with specific needs, the surge in demand for weight-loss drugs has created a “Wild West” scenario, according to Dr. Michael Snyder, an obesity specialist at FuturHealth. He emphasizes the need for adequate medical oversight and comprehensive patient care, beyond simply providing a weight-loss pill.
Learn more about GLP-1 medications and weight loss: KFF Report on GLP-1 Drugs
