Novo Nordisk (NYSE:NVO) shares rebounded in Frankfurt on Monday after telehealth provider Hims & Hers Health (NYSE:HIMS) abruptly scrapped the launch of a low-cost, compounded weight-loss pill following an aggressive regulatory warning from the U.S. Food and Drug Administration.
The Danish drugmaker’s stock rose 4.5% on Monday, extending a recovery that began late Friday.
The reversal by Hims & Hers came just 48 hours after it introduced a $49 monthly version of oral semaglutide—the active ingredient in Novo’s Ozempic and Wegovy.
The move sparked an immediate backlash from FDA Commissioner Marty Makary, who over the weekend signaled a federal crackdown on "illegal copycat drugs," citing concerns over patient safety and the lack of clinical verification for mass-compounded alternatives.
Despite the two-day rally, Novo Nordisk remains in the midst of a volatile period.
The company’s market capitalization has eroded by nearly 68% since its June 2024 peak, as investors grapple with the end of the "scarcity premium" for GLP-1 treatments.
Last week, Novo's stock suffered its worst one-day drop in decades—a 17% plunge—after management warned of "unprecedented price pressure" and projected that 2026 sales and earnings could decline by as much as 13% due to intensifying competition from Eli Lilly and the emergence of government-backed discount platforms like TrumpRx.