Novo Nordisk drops patent lawsuit against Hims & Hers in weight loss drug partnership deal

Novo Nordisk has dropped its lawsuit against Hims after the companies reached a Wegovy deal to sell branded weight loss medicines through the platform.

Early last month, Hims & Hers said it was going to launch a cheaper, off-brand version of the weight loss pill Wegovy, just weeks after Novo Nordisk launched its reformulation of the drug.

At the time, Novo Nordisk said it would sue Hims, calling the new product “an unapproved, inauthentic, and untested knockoff” of semaglutide, the chemical name for Wegovy.

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 US Food and Drug Administration threatened to restrict access to the ingredients needed to copy popular weight loss medicines.

The US Food and Drug Administration permits speciality pharmacies and other companies to make compounded versions of brand name drugs when they are in short supply.

Booming demand for GLP-1 drugs in recent years prompted companies such as Hims to enter the multibillion-dollar market, with many patients willing to pay cash.

In 2024, the US Food and Drug Administration said GLP-1 drugs were no longer in shortage, which was expected to put an end to compounding.

But companies such as Hims relied on an exception to keep selling their versions of the medicines because the practice is still permitted when a prescription is customised for the patient.

As part of the deal 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 in Hims & Hers Health Inc. jumped more than 36 per cent in Monday morning trading.

Despite the rise, shares are still well below their 52-week high of about US$70.

US-listed shares of Novo Nordisk rose 1.8 per cent.