Wegovy Maker Sues Rival Over ‘Knock-Off’ Weight-Loss Drugs
11 hours ago
Mitchell Labiak, Business Reporter
The manufacturer of Ozempic and Wegovy, Novo Nordisk, is taking legal action against a competitor for allegedly selling “unsafe, knock-off” weight-loss drugs in the United States. This lawsuit, filed in US courts on Monday, seeks an injunction against Hims & Hers’ line of weight-loss pills and injections, claiming they are unapproved by US authorities and infringe on Novo Nordisk’s patents.
The Legal Confrontation
– Beginning of the Drama: The situation escalated after Hims & Hers introduced a new weight-loss pill on Friday, prompting Novo Nordisk to issue an initial warning.
– Company Response: Over the weekend, Hims & Hers announced it would cease sales of the pill. However, the company described Novo Nordisk’s legal actions as a “blatant attack.”
– Market Impact: Following the news, Hims & Hers’ share price plummeted by 16% on Monday, contrasting with a modest increase in Novo Nordisk’s shares on Tuesday.
The Surge of Weight-Loss Drugs
Weight-loss medications such as Novo Nordisk’s Ozempic and Wegovy, along with Eli Lilly’s Zepbound and Mounjaro, have gained immense popularity in recent years. This rise has also led to a surge in low-cost copycat versions, raising safety concerns about these unregulated alternatives.
– Novo Nordisk’s Stance: The company stated its lawsuit against Hims & Hers is designed to “protect public health and defend the scientific innovations that deliver better health outcomes to Americans.”
– Hims & Hers’ Defense: In response, Hims & Hers asserted its commitment to providing safe access to personalized healthcare for millions, accusing Novo Nordisk of “weaponizing the US judicial system” to limit consumer choice.
The Compounding Controversy
– Expert Insight: Kerry Fulford, a pharmaceutical analyst at Berenberg, noted that this lawsuit marks Novo Nordisk’s first significant move to tackle compounding, a legal process allowing US drug makers to sell non-approved medications that cater to specific patient needs.
– FDA’s Role: Hims & Hers’ weight-loss drugs are compounded, while Novo Nordisk’s are not. The FDA has recently indicated it is working to tighten restrictions on compounded weight-loss drugs to ensure consumer safety.
Novo Nordisk referenced the FDA’s concerns in its lawsuit, emphasizing potential dangers associated with Hims & Hers’ compounded drugs, which “may contain dangerous impurities or incorrect amounts of active ingredients, posing serious health risks.”
Company Challenges and Regulatory Scrutiny
This legal battle comes at a challenging time for Novo Nordisk, which announced significant job cuts in September and warned investors of an impending profit slump due to patent expirations. Additionally, the FDA recently criticized Novo Nordisk for a television advertisement promoting Wegovy, suggesting it “misleadingly implies” benefits beyond mere weight loss, including emotional relief and life direction.
– Company’s Commitment: In response to the FDA’s feedback, Novo Nordisk affirmed its dedication to addressing regulatory concerns regarding its advertising practices.
Conclusion
The ongoing lawsuit against Hims & Hers highlights the complexities surrounding the weight-loss drug industry. With concerns around safety and efficacy at the forefront, the Wegovy maker is taking a firm stand to protect both its innovations and the welfare of consumers. As the market evolves, the outcomes of such legal battles will undoubtedly shape the future landscape of weight-loss medications.