Reviewed by Gotrade Internal Analyst
Gotrade News - Hims & Hers just pulled the plug on their $49 compounded weight-loss pill this weekend. This sudden U-turn comes hot on the heels of legal threats from Novo Nordisk and mounting pressure from US regulators.
The news instantly sent Novo’s stock climbing over 6% in Monday’s pre-market session (9/2). Investors are clearly cheering the exit of a low-cost rival that threatened to undercut the tightly contested weight-loss market.
Key Takeaways
Hims scraps its compounded semaglutide launch after legal and FDA pushback.
Novo Nordisk shares jump as the threat of cheap competition fades for now.
Pricing pressure from Eli Lilly remains a massive long-term hurdle for Novo.
Hims had previously dropped the $49 semaglutide-based pill just last Thursday. The ingredient is the exact same active compound found in Novo’s blockbuster drugs, Wegovy and Ozempic, but at a fraction of the price.
Hims management stated they would stop offering the treatment after "constructive conversations with stakeholders." This move essentially kills the product just two days after its controversial debut.
Regulatory Tailwind
FDA Commissioner Marty Makary has signaled a serious crackdown on unauthorized compounded meds. This stance acts as a major catalyst for Novo, which has been struggling to maintain its pricing power in the diabetes sector.
Novo’s stock had actually started rallying 5% last Friday in response to the regulator’s comments. The market is betting that the FDA will step in to shield patent holders from the flood of cheaper knockoffs.
Not Out of the Woods
Despite today’s green candles, Novo is still locked in a fierce battle with heavyweights like Eli Lilly. The company even flagged "unprecedented price pressure" in its earnings report last week.
Novo’s market cap has slashed nearly two-thirds since its peak in June 2024. Today’s rally offers some much-needed breathing room, but the long-term downtrend is still the elephant in the room.
Aggressive moves like this are prime territory for sharp traders. Whether this is the start of a real comeback or just a dead cat bounce, there’s opportunity on the table.
With Options on Gotrade, you can grab a Call position if you think the rally has legs, or a Put if you predict the price will dip back down. It’s capital-efficient with potential for gains in either direction.
That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.
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Reference:
Reuters, Novo Nordisk shares rise as Hims abandons $49 weight-loss pill. Accessed on February 9, 2026
Global Banking and Finance, Novo Nordisk shares rise as Hims abandons $49 weight-loss pill. Accessed on February 9, 2026
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