Novo Nordisk A/S (NYSE:NVO) reversed a two-day decline with a notable gain in its stock price on Friday, following the company's release of its fiscal 2026 sales outlook earlier in the week that disappointed investors and intensified apprehensions within the marketplace. The Danish pharmaceutical giant’s updated guidance indicated a projected adjusted sales decrease for fiscal year 2026 between 5% and 13%, measured at constant exchange rates (CER), excluding revenues influenced by the reversal of 340B provisions.
This guidance announcement on Tuesday had initially pressured Novo Nordisk shares, reflecting concerns about the company's near-term revenue trajectory. However, the dynamic shifted after Thursday's developments involving Hims & Hers Health Inc. (NYSE:HIMS), which declared that it would broaden its weight loss product line by offering healthcare providers a compounded semaglutide pill. This pill contains the same active ingredient as Novo Nordisk’s leading weight management medication, Wegovy.
Hims & Hers unveiled that eligible patients could begin these treatment plans at an introductory price point starting at $49 for the first month. This competitive move aims to attract customers searching for more accessible or affordable GLP-1 based treatments outside of traditional pharmaceutical channels.
Novo Nordisk responded with a formal statement condemning Hims & Hers’ introduction of the compounded semaglutide pill, labeling it as an unauthorized, untested, and potentially unsafe imitation of their product. The company described Hims & Hers’s approach as "illegal mass compounding" that poses significant risks to patient safety and communicated intentions to pursue legal and regulatory remedies against Hims & Hers.
Further underscoring this dispute, Novo Nordisk highlighted a history of deceptive practices by Hims & Hers related to similar GLP-1 knockoff products, noting that the U.S. Food and Drug Administration (FDA) had previously issued warnings against their advertising tactics purportedly misleading American consumers.
The stock experienced an upward adjustment after the FDA commissioner, Dr. Marty Makary, used a social media platform on Friday to announce that the agency would take prompt enforcement action against companies promoting illegal copycat drugs that claim equivalence to FDA-approved medications. Dr. Makary emphasized that non-approved drugs lack verifiable evidence regarding quality, safety, or effectiveness. Although the statement did not explicitly identify any particular companies or products, the timing appeared closely aligned with the tensions involving Novo Nordisk and Hims & Hers.
At the time of publication on Friday, Novo Nordisk shares had climbed 8.32%, trading at $46.96 per share, and were trading approximately 8.6% above their 52-week low, according to financial data provided by Benzinga Pro.
This recent activity highlights the confluence of market reactions to revised corporate projections alongside regulatory and legal battles concerning intellectual property and patient safety in the growing field of GLP-1 based weight-loss therapies.
The unfolding situation illustrates the pressures Novo Nordisk faces not only from internal business dynamics but also external competitive threats via compounding pharmacies and alternative treatment providers challenging established pharmaceutical models.
Key Points:
- Novo Nordisk forecasted adjusted sales for fiscal 2026 to decline between 5% and 13% at constant exchange rates, excluding the reversal of 340B revenue.
- Hims & Hers Health expanded its weight loss offerings by introducing a compounded semaglutide pill with the same active ingredient as Novo Nordisk's Wegovy, at an introductory price starting at $49.
- In response, Novo Nordisk condemned Hims & Hers’s product as illegal, unapproved, and unsafe, threatening legal and regulatory actions.
- The FDA commissioner stated intentions to swiftly act against companies marketing illegal copycat drugs, enhancing Novo Nordisk's position amid the dispute.
- The projected decline in adjusted sales for fiscal 2026 indicates ongoing revenue pressures for Novo Nordisk, potentially affecting stock performance and investor sentiment.
- The presence of unapproved compounded semaglutide pills in the market introduces potential safety concerns and may impact Novo Nordisk’s market share in the weight loss segment.
- Legal and regulatory battles with companies like Hims & Hers could result in costly litigation and divert management attention.
- FDA enforcement actions, while supportive of regulatory standards, introduce uncertainty related to market dynamics in treatments involving GLP-1 drugs.
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