Novo Nordisk Sues Hims & Hers Over $49 Pill, Shares Jump 3.9%
Novo Nordisk filed suit against Hims & Hers over a $49 weight-loss pill sharing Wegovy’s ingredient, prompting Hims to suspend sales and lifting shares 3.9%. Analysts forecast a 5-13% sales decline due to competition; Novo Nordisk trades at 13x P/E versus Eli Lilly’s 46x, supporting a bullish case.
1. Patent Suit vs Hims & Hers
Novo Nordisk initiated legal proceedings against Hims & Hers Health, alleging patent infringement after the telehealth company launched a weight-loss pill at $49 containing Wegovy’s ingredient. Hims & Hers halted the product following threats from Novo Nordisk and regulatory scrutiny over patent and marketing claims.
2. Stock Performance and Options Activity
Shares of Novo Nordisk ADR climbed 3.9% on the lawsuit news, marking the largest single-day gain since August 2023 despite a 42.4% year-over-year deficit. At ISE, CBOE and PHLX, NVO’s 50-day call/put volume ratio hit 4.51, ranking higher than 96% of readings over the past year and signaling pronounced bullish options interest.
3. Valuation Outlook vs Eli Lilly
Analysts project Novo Nordisk sales will decline 5-13% as compounded drug competition intensifies. Trading at 13x forward P/E versus Eli Lilly’s 46x multiple, Novo Nordisk’s lower valuation underpins a favorable long-term investment thesis.