But just two days later, Hims dropped its plan to offer the cheaper, off-brand version of Wegovy. That move came a day after the Food and Drug Administration threatened to restrict access to the ingredients needed to copy popular weight-loss medications.
The FDA permits specialty pharmacies and other companies to make compounded versions of brand name drugs when they are in short supply. And the booming demand for GLP-1 drugs in recent years prompted companies like Hims to jump into the multibillion-dollar market for the drugs, with many patients willing to pay cash.
In 2024, the FDA said that GLP-1 drugs were no longer in a shortage, which was expected to put an end to the compounding. But companies like Hims relied on an exception to keep selling their versions of the medications because the practice is still permitted when a prescription is customized for the patient.
As part of the deal the two companies reached that was announced on Monday, Hims will offer oral and injectable versions of Wegovy and Ozempic on its platform later this month. Hims will also stop advertising compounded GLP-1 drugs on its platform or in its marketing.
Novo Nordisk said in a statement that it is reserving the right to refile its lawsuit in the future.
Shares of Hims & Hers Health Inc. jumped more than 36% in Monday morning trading. Despite the bump, shares are still well off their 52-week high of about $70. U.S.-listed shares of Novo Nordisk rose 1.8%.