Novo Nordisk (NVO 2.05%) is taking investors on another rollercoaster ride.
Last week, shares of the Danish pharmaceuticals stock tumbled as much as 27% on news that compounded pharmaceuticals firm Hims & Hers Health (HIMS 7.88%) would begin selling its own version of Novo's new Wegovy GLP-1 weight loss pill for just $49 per month.
Over the weekend, though, Hims announced it will in fact not sell the knockoff Wegovy pill. Nnow Novo Nordisk stock is bouncing back, up 3% through 12:15 p.m. ET.
Image source: Getty Images.
Hims & Hers surrenders. Novo Nordisk sues.
Of course, there's a bit more to the story than that.
Novo wasn't pleased with Hims' announcement. After all, Hims' mooted price would undercut Novo's $149-a-month price for Wegovy in pill form -- and its $199 price for injectable Ozempic. Novo threatened to sue Hims for patent infringement Friday.
That same day, the Food and Drug Administration said it would crack down on Hims & Hers, potentially cutting off access to ingredients Hims needs to manufacture Wegovy (Ozempic) copycat pills, or by seizing Hims & Hers products.
Then, this morning, Novo followed through on its threat and filed in federal court for a permanent injunction against Hims & Hers selling any drugs that violate its "'343 Patent" on "semaglutide and the pharmaceutical products containing it." If Novo wins this lawsuit, Hims could be forbidden from selling both Ozempic copycats and Wegovy lookalikes, in pill or in injectable form.
NYSE: NVO
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What this means for Novo Nordisk stock
The outcome of litigation is never certain, but Novo appears to have the FDA on its side in this fight, and that's a good ally to have. Hims and Hers' decision to quickly cave on selling its pill further illustrates the strength of Novo's position.
Today's a good day to own Novo Nordisk stock.
