March 9 (Reuters) – Hims & Hers’ shares were up over 50% in premarket trading on Monday, after Novo Nordisk agreed to sell its blockbuster Wegovy and Ozempic drugs through the telehealth firm’s platform, signaling an end to the dispute between the two companies.
The deal lands roughly a month after Novo filed a patent‑infringement lawsuit against Hims, following the U.S. telehealth firm’s launch, and then cancellation, of a $49 copy of Novo’s obesity pill.
Analysts said the development was both surprising and clearly positive for Hims, which was otherwise facing the prospect of a prolonged and costly legal battle.
Hims shares were up 51.7% at $23.8 premarket, while U.S.-listed shares of Novo were up 1.3%.
Novo is grappling with telehealth firms offering cheaper compounded copycat versions of its obesity treatments.
Last year, Novo ended a short-lived agreement to sell its Wegovy weight-loss drug through Hims over the company’s marketing tactics and continued sales of Wegovy copies.
Leerink analyst Michael Cherny said the deal suggests Novo is expanding its distribution network and Hims’ large consumer reach makes it an attractive channel once legal issues are cleared.
The financial impact for Hims, however, remains uncertain.
Under the agreement, effective later this month, Hims customers will gain access to U.S. regulatory-approved Ozempic and Wegovy injectables, as well as the Wegovy pill, at Novo’s self-pay prices.
Analysts said although selling Novo’s branded products would bring a higher revenue contribution, it will likely generate lower margins for Hims than its compounded offerings.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Krishna Chandra Eluri)
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