Novo Nordisk Drops Patent Lawsuit Against Hims & Hers, Reaches Distribution Deal

Novo Nordisk is dismissing its patent infringement lawsuit against telehealth company Hims & Hers, as the two companies have reached an agreement that will see Novo Nordisk's branded weight loss medicines sold through the Hims platform. The settlement was announced on Monday.

Early last month Hims & Hers said that it was going to launch a cheaper, off-brand version of the weight-loss pill Wegovy, just weeks after drugmaker Novo Nordisk launched its highly anticipated reformulation of the blockbuster medication. At the time, Novo Nordisk vowed to sue Hims, calling the new product "an unapproved, inauthentic, and untested knockoff" of semaglutide, the chemical name for Wegovy.

But just two days later, Hims dropped its plan to offer the cheaper, off-brand version of Wegovy. That move came a day after the Food and Drug Administration threatened to restrict access to the ingredients needed to copy popular weight-loss medications.

As part of the deal the two companies reached, Hims will offer oral and injectable versions of Wegovy and Ozempic on its platform later this month. Hims will also stop advertising compounded GLP-1 drugs on its platform or in its marketing. Novo Nordisk said in a statement that it is reserving the right to refile its lawsuit in the future.

The FDA permits specialty pharmacies and other companies to make compounded versions of brand name drugs when they are in short supply. And the booming demand for GLP-1 drugs in recent years prompted companies like Hims to jump into the multibillion-dollar market for the drugs, with many patients willing to pay cash. In 2024, the FDA said that GLP-1 drugs were no longer in a shortage, which was expected to put an end to the compounding. But companies like Hims relied on an exception to keep selling their versions of the medications because the practice is still permitted when a prescription is customized for the patient.

The dramatic decline in Hims & Hers shares is largely attributed to escalating issues within the company's GLP-1 weight-loss medication business. In a concentrated two-week period, the company was hit by three significant setbacks. First, the U.S. Food and Drug Administration (FDA) declared a lower-cost pill version of semaglutid offered by Hims & Hers to be an illegal copy, forcing its removal from the market. Almost simultaneously, pharmaceutical giant Novo Nordisk filed a patent infringement lawsuit. Compounding these problems, the U.S. Securities and Exchange Commission (SEC) initiated an inquiry into the company's disclosure practices concerning its weight-loss segment.

Despite closing the 2025 fiscal year with record revenue and solid profitability, shares of telehealth provider Hims & Hers have faced a severe sell-off. Hims & Hers reported a 59% increase in annual revenue for 2025, reaching approximately $2.35 billion, with net income of $128 million. However, the outlook for the coming quarter fell well short of market expectations. Management's revenue forecast for Q1 now sits between $600 million and $625 million, notably below the over $650 million anticipated by analysts. The company attributes this shortfall to supply constraints for certain compounds, which it estimates will reduce revenue by about $65 million.

Shares of Hims & Hers Health Inc. jumped more than 36% in Monday morning trading. Despite the bump, shares are still well off their 52-week high of about $70. U.S.-listed shares of Novo Nordisk rose 1.8%. Trading at €12.28, the stock has lost nearly 57% year-to-date, placing it precisely at its 52-week low.

In a strategic shift aimed at reducing reliance on the turbulent U.S. weight-loss market, Hims & Hers has announced a major acquisition. The company plans to purchase digital health provider Eucalyptus for roughly $1.15 billion. This move is designed to significantly accelerate international expansion into markets including the United Kingdom, Germany, and Japan, thereby diversifying its business model.