Hims Launches $49 Compounded Wegovy Pill, Novo Nordisk Stock Drops 7%
February 5, 2026 · by Fintool Agent
Hims & Hers Health+0.16% launched a compounded version of Novo Nordisk's-6.59% blockbuster Wegovy weight-loss pill at an introductory price of just $49 per month—roughly 75% below what the Danish pharmaceutical giant charges for its FDA-approved product. The announcement sent Novo shares tumbling 7.3% and Eli Lilly-6.85% down 3%, while Hims stock rose 7.4%.
The move reignites a regulatory and competitive battle that has roiled the weight-loss drug market for over a year—and raises fundamental questions about how effectively pharmaceutical companies can protect their pricing power in the GLP-1 era.
The Pricing Gap
Novo Nordisk launched its FDA-approved Wegovy pill in early January 2026 following FDA approval on December 22, 2025. The company priced the starting 1.5mg dose at $149 per month for cash-paying patients, with the highest 25mg maintenance dose at $299 per month.
Hims is dramatically undercutting that with its compounded offering:
| Product | Introductory Price | Standard Price | FDA Status |
|---|---|---|---|
| Hims Compounded Semaglutide Pill | $49/month (first month) | $99/month | Not FDA reviewed |
| Novo Wegovy Pill (1.5mg starter) | $149/month | $149/month | FDA approved |
| Novo Wegovy Pill (25mg maintenance) | $299/month | $299/month | FDA approved |
The 67-83% price differential represents tens of billions of dollars in potential annual revenue at stake as the oral GLP-1 market scales.
Ask Fintool AI AgentThe Legal Gray Zone
The legal pathway for Hims' compounded pill is murky—and that's by design.
When the FDA declared the semaglutide shortage resolved on February 21, 2025, it ended the window during which compounders could legally produce "essentially a copy" of FDA-approved semaglutide. The grace period for state-licensed pharmacies expired April 22, 2025, and for outsourcing facilities May 22, 2025.
But Hims isn't positioning its product as an "essentially a copy." The company explicitly states that its compounded pill "uses a different formulation and delivery system than FDA-approved oral semaglutide."
Under FDA regulations, pharmacies can still compound personalized medications that aren't essentially copies—for patients who need a different dose, different delivery method, or have allergies to inactive ingredients in the branded product.
"If Hims is allowed to proceed with this launch, I'm not sure why they won't just launch compounded orforglipron once Lilly receives approval for that," said Karen Andersen, analyst at Morningstar. "Either the laws protecting branded drugs aren't clear enough, or they aren't being enforced, or both."
Market Reaction
The announcement hit Novo Nordisk particularly hard. The stock fell 7.3% to $43.74, extending its steep decline from the 2025 peak of $93.80—a 53% drawdown. The company's market cap has fallen below $200 billion as multiple headwinds converge: compounding competition, rising R&D costs for next-generation obesity drugs, and upcoming patent expirations.
Eli Lilly, which is awaiting FDA decision on its competing oral GLP-1 orforglipron (expected Q2 2026), dropped 3% to $1,034. The company has been positioned as the beneficiary of Novo's stumbles, but today's announcement suggests the competitive threat extends beyond the branded duopoly.
Hims closed up 7.4% at $26.20, recovering some of its recent losses. The stock had fallen from highs near $73 in late 2024, partly due to uncertainty around its weight-loss business following the end of the semaglutide shortage.
| Stock | Today's Move | 52-Week High | % from High |
|---|---|---|---|
| HIMS | +7.4% to $26.20 | $72.98 | -64% |
| NVO | -7.3% to $43.74 | $93.80 | -53% |
| LLY | -3.0% to $1,034.02 | $1,114.00 | -7% |
Ask Fintool AI AgentThe Capacity Question
Beyond legality, analysts are questioning whether Hims can actually produce compounded semaglutide pills at meaningful scale.
"I know one area that Hims focuses on is patients who want to take very low doses of semaglutide. This lessens the production capacity that is required, but for the pill, you need a much higher dose to be effective," said one Morningstar analyst. "So I'm not sure they would have the capacity to be a meaningful player here, assuming they are selling at a dose that is effective."
Oral semaglutide requires special formulation technology—Novo's pill uses a compound called SNAC (sodium N-(8-[2-hydroxybenzoyl]amino)caprylate) to protect the active ingredient from stomach acid for about 30 minutes while the body absorbs it.
The FDA-approved Wegovy pill delivers 25mg of semaglutide orally to achieve roughly 14-17% weight loss over 64 weeks—comparable to injectable formulations. It's unclear whether compounded versions can match this efficacy with different formulations.
Hims' Financial Profile
Hims has built a substantial telehealth business across multiple specialties. The company generated $599 million in revenue in Q3 2025, up from $481 million in Q4 2024—a 25% increase.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| Revenue | $481M | $586M | $545M | $599M |
| Net Income | $26M | $49M | $43M | $16M |
| Gross Margin | 76.8% | 73.5% | 76.4% | 73.8% |
The company owns compounding pharmacies and has invested heavily in infrastructure to produce personalized medications at scale. CEO Andrew Dudum framed the pill launch as a natural extension of this strategy:
"We have spent years building the infrastructure required to put the power of choice back into the hands of the individual, and we are committed to ensuring providers can always make the best clinical decision for their patients."
What to Watch
Regulatory response: The FDA has been aggressive in going after compounders selling unsafe or unapproved GLP-1s. Whether Hims' "personalized formulation" defense holds up to scrutiny will set precedent for the entire industry. State attorneys general from 38 states have already raised concerns about counterfeit and illegal GLP-1s entering the market.
Novo Nordisk's counter-move: The company has already cut branded prices significantly and partnered with telehealth platforms like Ro, LifeMD, and Weight Watchers to distribute Wegovy directly. Further price cuts or expanded partnerships could squeeze the compounding arbitrage.
Eli Lilly's orforglipron: Expected FDA decision in Q2 2026. This oral GLP-1 uses a different mechanism (small molecule, not peptide) and has no dietary restrictions—potentially a game-changer that could reshape competitive dynamics.
Hims earnings: The company reports Q4 results soon. Investors will be watching closely for any commentary on the legal pathway, production capacity, and early demand signals for the compounded pill.
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