Novo-Nordisk A/S's share price surged over 7% again, while Hims halted its $49 weight-loss drug following FDA pressure.

Cailian Press reported on February 9 (edited by Niu Zhanlin) that Novo-Nordisk A/S's stock surged more than 7% in pre-market trading on Monday after Hims & Hers Health canceled the launch of a $49 generic weight-loss drug. Previously, the Danish pharmaceutical company and the U.S. Food and Drug Administration (FDA) had both issued legal threats against Hims' product.

The rise pushed Novo-Nordisk A/S’s stock back to levels before Hims announced the launch of its generic drug. Following the FDA’s announcement last Friday to tighten regulations on compounded GLP-1 drugs, Novo-Nordisk A/S's shares rebounded nearly 10%.

Investors interpreted the FDA's move as signaling a broader crackdown on 'compounded GLP-1 drugs,' which would reduce competitive pressures on branded original drugs. This regulatory shift is clearly beneficial for large pharmaceutical companies like Novo-Nordisk A/S.

Hims announced the launch of this compounded weight-loss drug last Thursday, triggering strong backlash from Novo-Nordisk A/S and regulators. The drug is based on semaglutide, the core ingredient in Novo-Nordisk A/S’s blockbuster weight-loss and diabetes drugs Wegovy and Ozempic.

Hims stated on Saturday that it would cease offering the treatment after constructive dialogue with relevant stakeholders. Affected by this, Hims' stock fell 15% in pre-market trading on Monday.

The FDA previously announced it would restrict the use of GLP-1 active ingredients in unapproved compounded drugs. These ingredients were widely sold by telemedicine platforms such as Hims and compounding pharmacies as alternatives to original drugs. The FDA cited concerns over quality, safety, and potential violations of federal law as the basis for its action.

Sydbank analyst Soren Lontoft Hansen noted that the rise in Novo-Nordisk A/S’s stock reflects investors’ positive response to the FDA beginning to comprehensively regulate the gray area of the compounding pharmaceutical industry.

Hansen stated that the FDA’s actions 'are not only a declaration against Hims' generic oral version of Wegovy but also a move against the entire field of compounded GLP-1 drugs.' This change benefits Novo-Nordisk A/S and its competitor Eli Lilly and Co alike.

Hims’ swift withdrawal of its weight-loss drug launch marks a rare victory for Novo-Nordisk A/S in its long-term struggle against generic GLP-1 drugs.

However, in the highly competitive and rapidly evolving GLP-1 market, Novo-Nordisk A/S continues to face significant pressure. Eli Lilly and Co, along with various compounding pharmacies, are still offering versions of semaglutide injections, intensifying market competition.

Since its stock price peaked in June 2024, Novo-Nordisk A/S has seen nearly two-thirds of its market value evaporate, with a cumulative decline of nearly 50% over the past year.

More recently, the company’s share price plummeted 17% in a single day last week after it warned in its full-year results that it was facing 'unprecedented pricing pressures.'

In 2025, Novo-Nordisk A/S had partnered with Hims & Hers Health to allow the latter to sell injectable Wegovy; however, the two ultimately parted ways. Novo-Nordisk accused Hims of improperly marketing generic versions of Wegovy, while Hims CEO Andrew Dudum accused Novo-Nordisk of attempting to control the clinical decision-making of Hims' practitioners.

Although Novo-Nordisk A/S is a pioneer in the obesity drug market, a series of recent setbacks indicate that its dominant market position is rapidly eroding. With Eli Lilly and Co's oral weight-loss drug orforglipron launching in April, market competition is set to intensify further.

During last Sunday’s Super Bowl event, Hims, Novo-Nordisk A/S, and Eli Lilly and Co all aired advertisements for weight-loss drugs, highlighting the fierce level of competition in the market.