Hims Teams up with Novo to Compete for Weight Loss Scripts

Novo Nordisk and Hims & Hers just went through the pharma equivalent of an enemies-to-lovers arc. The two struck a deal Monday for Hims to offer official versions of Novo’s GLP-1 drugs Ozempic and Wegovy. The team-up comes months after Novo sued Hims for selling knockoffs. 

At the center of Novo’s now-dropped lawsuit was a compounded copycat of the Wegovy weight-loss pill Novo started offering this year. The blockbuster pill has already racked up 600,000 prescriptions, Novo’s CEO said. Now, Hims will be able to sell the Wegovy pill, as well as Ozempic and Wegovy injectables. While Hims can still sell compounded GLP-1s when providers decide they’re needed, it can no longer advertise the knockoffs.

Novo’s decision helped drive shares of the DTC pharma company 47% higher yesterday morning. 

Rise of Millennialized Telehealth

Hims & Hers, founded about nine years ago as a millennial-targeted telehealth startup, has grown its biz with a massive marketing push. Hims spent about $679 million on ads in 2024 and bought spots in the past two Super Bowls. The marketing blitz is meant to help it stand out: Rival telehealth company Ro has become known for its ads showing Serena Williams self-poking GLP-1s.

Big Pharma has been struggling to get a handle on these up-and-comers:

• Telehealth pharmacies were able to sell compounded versions of popular GLP-1 drugs through a legal loophole that allows them to do so during FDA-declared shortages. But when Novo and Eli Lilly ramped up production of official versions of the drugs, and the FDA declared the shortages over, companies had two months to take their money-making compounded options off the market. Many didn’t, citing legal loopholes, which prompted lawsuits. 
• Pressure on Hims, Ro and others ramped up last week when the FDA said it’d take action against companies marketing illegal copycats. Big Pharma, meanwhile, is taking sides: Similar to the Hims-Novo deal, Ro has a tie-up with Eli Lilly to sell its blockbuster weight-loss drug, Zepbound. 

Side Effects: The rise of new Big Pharma options and compounding competitors has pressured companies to cut prices. Novo discounted its weight-loss drugs from about $1,000 per month to less than $300, and Novo anticipates sales declines this year. Hims agreed to sell Novo’s drugs at the drugmaker’s prices, which could mean tighter margins for the telehealth company, too.