MW Novo Nordisk's stock is rallying as Hims & Hers' stock falters. An Ozempic alternative won't be available for long.
By Steve Goldstein
Novo Nordisk shares rallied on Tuesday as a maker of a weight-loss drug alternative confirmed it won't be selling it for much longer.
Hims & Hers Health Inc.'s stock plunged last week when the Food and Drug Administration said that there was no longer a shortage of the weight-loss drugs that allow for alternatives to be made.
Hims & Hers's $(HIMS)$ stock lost another 19% in premarket trade as Novo Nordisk's $(NVO)$ (DK:NOVO.B) shares rose 3%.
On Monday's earnings call from Hims & Hers, the company discussed the FDA ruling.
Hims & Hers said commercially available dosages of semaglutide - the chemical name for the medication behind Ozempic and Wegovy - will not be offered after the first quarter.
The company did say "there may be potential" to offer commercially available dosages of compounded semaglutide throughout the year, however, it forecasts its weight-loss offering to primarily be composed of "evolving" oral solutions as well as generic liraglutide, the chemical name of another Novo Nordisk product, Saxenda.
Analysts at Citi said Hims & Hers' goal of $725 million of weight-loss revenue in 2025 was ambitious, given oral-drug sales just reached $100 million annualized in July and liraglutide requires daily injections.
Personalized semaglutide will supplement the offerings for consumers with a clinical necessity - such as people who have taken the medication but experience extreme nausea. Personalized dosages have to be at least 10% different than commercially available drugs, the Citi analysts said.
As for deals with Novo Nordisk and Lilly, Hims & Hers said it's not off the table but that right now it doesn't seem likely given supply chains, the reimbursement rate and costs.
Bank of America analysts said the potential for less compounding is important for Novo Nordisk.
-Steve Goldstein
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February 25, 2025 07:29 ET (12:29 GMT)
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