HIMS Plunges on Compound Weight-Loss Pill Cancellation as NVO Sues; NVO Gains

HIMS shares fell 25% on Monday after the telehealth weight-management company announced it would discontinue its compounded semaglutide pill, days after launching it. Novo Nordisk (NVO) filed a lawsuit seeking a permanent ban on HIMS selling unapproved compounded drugs that infringe its patents and damages, while Lilly (LYG) is expected to gain FDA approval for its weight-loss drug later this year. The FDA plans to restrict GLP-1 use in compounded versions, citing HIMS by name. The move could limit competition for Novo Nordisk, which gained about 4% in recent trading. HIMS shares lost more than 60% over the past 12 months, while NVO shares are down about 40% and Lilly up over 20%.