Cheap copycat puts new pressure on plan costs, regulators, and big pharma margins
Hims & Hers just put a US$49 GLP‑1 pill on the table, and that matters a lot more for drug pricing than for telehealth hype, according to Reuters.
Online telehealth firm Hims and Hers Health has started selling a compounded version of Novo Nordisk’s new Wegovy weight‑loss pill for US$49 for the first month and US$99 a month on a five‑month plan, compared with Novo’s cash‑pay launch price of US$149 initially and US$199 after that.
The drug uses semaglutide, the same active ingredient as Wegovy and Ozempic.
Markets registered the threat immediately.
Novo Nordisk’s shares fell roughly 7 percent–8.6 percent and Eli Lilly’s stock dropped around 6 percent–7 percent after the Hims announcement, as reported by Reuters, on worries that lower‑cost alternatives could squeeze margins and accelerate price competition in GLP‑1s.
Novo is framing this as a legal and safety issue, not just a discount.
The company called Hims’ move “illegal mass compounding that poses a significant risk to patient safety” and said it will pursue legal and regulatory action “to protect patients, our intellectual property and the integrity of the US gold‑standard drug approval framework.”
A Novo spokesperson also labelled Hims’ mass compounding illegal and tied it to what the company described as a pattern of “knock‑off GLP‑1 products,” as per CNBC.
Compounded GLP‑1 pills sit in a regulatory grey zone.
These products are not FDA‑approved, do not go through clinical trials and face limited oversight, while Novo’s oral Wegovy showed more than 16 percent weight loss in trials, Reuters said.
The US Food and Drug Administration warned Hims in September that marketing compounded semaglutide as having the “same active ingredient as Ozempic and Wegovy” is misleading because compounded drugs are not FDA‑approved.
Hims argues that it is operating within the rules and focusing on tailoring care.
A company spokesperson told Reuters that Hims has not compromised on safety or efficacy and uses a liposome‑based technology intended to support absorption.
The firm says its once‑a‑day pill uses the same active ingredient as Wegovy, but with a different formulation and delivery system, and lets providers customise doses for patients who want to avoid needles or need smaller doses to balance side‑effects.
Analysts see broader competitive and legal implications if Hims proceeds.
A Morningstar analyst told Reuters that if regulators allow this launch, there is little reason Hims would not try compounded versions of future GLP‑1 pills such as Eli Lilly’s upcoming orforglipron once it receives approval.
A TD Cowen analyst said to Reuters that the current status quo lets compounders create “copycat” drugs if they make minor tweaks they claim benefit specific patient groups, leaving “the door pretty wide open.”
All of this lands as Novo already faces pricing and patent pressure.
Its shares fell nearly 50 percent in 2025 and are down a further 15 percent this year, while the company now expects sales and profit to decline 5 percent–13 percent in 2026, mainly because of US pricing pressure and loss of semaglutide exclusivity in markets such as Canada and China, according to CNBC.
By contrast, Eli Lilly expects about 25 percent sales growth this year.
