GLP-1 Weight-Loss Pill In US In A Shock To Novo, Lilly

Online telehealth company Hims and Hers  Health on Thursday began offering a much cheaper $49 compounded version of Novo Nordisk's new Wegovy weight-loss pill in a move that expands sales to many Americans but could undercut Novo's and Eli Lilly's plans for the consumer market.  The news touched off a swift reaction on Wall Street as investors sold off Novo and Lilly shares, and the Danish drugmaker promised a legal challenge to the move by Hims.    Novo shares fell 8.6%, while Lilly was off 6%.   Hims' pricing, $49 for the first month and $99 afterwards for those who purchase a five-month plan, makes their GLP-1 drug as affordable as monthly internet or streaming services in the U.S. It can offer access to treatment for many more of the estimated 200 million Americans who are overweight or obese.

It is $100 less than Novo, which launched its pill in January at $149 for first-time users and $199 after that. Lilly is expected to launch its pill in April and has promised the Trump Administration affordable pricing including on its new TrumpRx site.  Hims' move came after Novo warned on March 4th, that pricing pressure was unprecedented for its weight-loss medicines and dropped its full-year forecast. Novo shares on March 5th, hit their lowest level since July 2021.