Novo Nordisk announced on Tuesday that it is partnering with telehealth providers including Hims & Hers Health, Ro, and Life MD to make its widely acclaimed weight loss medication Wegovy more accessible now that supply shortages in the U.S. have been resolved.
As news of the partnerships broke, shares of Hims & Hers surged by 30% in premarket trading, while shares of Novo Nordisk saw a modest increase of 3%.
With the legal restrictions on many compounding pharmacies conducting business on cheaper, unapproved versions of Wegovy, Novo Nordisk is eager to capture a larger share of the patient market. Demand for Wegovy had previously surged, leading many to seek out compounded alternatives during the shortage.
“We felt it was really important to work hard to establish a collaboration with telehealth companies so that there could be access to Wegovy as the compounding is winding down,” stated Dave Moore, executive vice president of U.S. operations at Novo Nordisk, in an interview with Finance Newso.
He expressed optimism about the response to the availability of branded Wegovy as patients transition away from compounded medicines.
Moore elaborated on how these new partnerships create a “seamless” experience for patients, allowing them to obtain Wegovy directly from their telehealth providers, which facilitates straightforward home delivery of the medication.
Through these services, patients will be able to access Novo Nordisk’s direct-to-consumer online pharmacy, NovoCare, via their telehealth providers.
The pharmacy is offering Wegovy at a reduced cash price of $499 per month, a significant discount compared to its regular list price, for those without insurance coverage for the weekly injection.
Prices may vary among telehealth companies due to additional services they offer, explained a Novo Nordisk representative to Finance Newso.
Hims & Hers will provide all dose sizes of Wegovy alongside 24/7 care, nutritional counseling, and continual clinical support, with pricing starting at $599 per month for qualified cash-paying patients with prescriptions.
According to CEO Andrew Dudum, the added services contribute to a higher price point. He believes the collaboration with Novo Nordisk could serve as a model for how patients can access competitive pricing and quality medication.
In a contrast to Hims & Hers, Ro is opting for a more competitive price, with Wegovy available at $499 per month. Ro’s membership includes around-the-clock messaging, personalized coaching, and informative resources via its Body Program, excluding the medication cost.
Ro’s CEO, Zach Reitano, emphasized that the addition of FDA-approved treatments at the lowest cash price will broaden access to essential obesity care for patients across the country, particularly for those lacking insurance.
Earlier this month, Hims & Hers announced a partnership to offer Eli Lilly’s weight loss medication Zepbound and the diabetes treatment Mounjaro, in addition to the generic injection liraglutide. However, unlike the deal with Novo Nordisk, Eli Lilly clarified it has no formal connection with Hims & Hers.
Since May 2024, Hims & Hers has been offering compounded semaglutide, the active ingredient in Novo Nordisk’s Ozempic and Wegovy, but has had to cease large-scale offerings. Dudum noted that personalized doses may still be provided when deemed clinically necessary.
“That was one of the first things we communicated to Novo: we will persist in advocating for consumers’ rights,” Dudum remarked. “The regulations are clear.”
Under FDA guidelines, pharmacists are legally allowed to create compounded versions during declared shortages and can make them on a case-by-case basis when medically justified, such as for individuals who may be unable to swallow pills or have allergies to specific ingredients.
However, drug manufacturers and health professionals have raised concerns over compounding due to the FDA’s lack of approval for these drugs. Larger compounding pharmacies that produce copies of semaglutide in bulk without prescriptions face a deadline of May 22 to halt their sales, while smaller, state-licensed pharmacies had a cut-off of April 22.
“This approach ensures that we adhere closely to the regulations,” Moore explained. “It’s the best way we can assist patients.”
— Finance Newso’s Brandon Gomez and Angelica Peebles contributed to this report
