Hims & Hers Health Stock Falls Amid GoodRx Deal with Novo Nordisk

Hims & Hers Health's stock declined 2% after rival GoodRx announced a deal with Novo Nordisk to sell GLP-1 drugs at $499/month. Hims & Hers Health's partnership with Novo Nordisk was abruptly ended due to concerns about the telehealth platform's illegal sales of knockoff versions of Wegovy. GoodRx's stock rallied 37% on the news, while Novo Nordisk's stock rose 3.7%. Hims & Hers Health is facing legal risks related to the matter.

Hims & Hers Health (HIMS) stock declined 2% on Monday following the announcement of a partnership between rival GoodRx Holdings (GDRX) and Novo Nordisk (NVO). The deal allows GoodRx to sell Novo Nordisk's GLP-1 drugs, Ozempic for diabetes and Wegovy for weight loss, at a reduced price of $499 per month [1].

The partnership comes at a challenging time for Hims & Hers Health, which recently faced a 34% single-day stock plunge after Novo Nordisk abruptly terminated their partnership. The termination was due to allegations that Hims & Hers Health was selling illegal knockoff versions of Wegovy [2]. The company is now facing legal risks related to this matter [3].

GoodRx's stock rallied 37% on the news, while Novo Nordisk's stock rose 3.7%. The deal is a significant milestone in the GLP-1 market, as it makes these in-demand medications more accessible to those lacking adequate insurance coverage [1]. The GLP-1 receptor agonist (GLP-1 RA) market has become a defining battleground in the biopharma industry, with Novo Nordisk and Eli Lilly (LLY) dominating the landscape for diabetes and obesity treatments [1].

The partnership follows similar pricing strategies from competitors. Eli Lilly and Co. (LLY) launched $499 monthly pricing for Zepbound’s highest doses through LillyDirect in July, and Novo Nordisk previously introduced NovoCare Pharmacy in March, offering direct-to-patient Wegovy delivery at the same price point [1].

Hims & Hers Health is facing increased competition as a result of this partnership. The company recently expanded into the GLP-1 space by offering telehealth-based access to weight loss treatments, but the lower-cost access through GoodRx could challenge its business model [4].

The FDA approved an additional Wegovy indication for liver condition treatment on Saturday, potentially expanding the addressable patient population further [1]. This move could further drive demand for GLP-1 medications and support the growth of Novo Nordisk and GoodRx.

Investors should monitor how other companies leverage direct-to-consumer (DTC) channels and pharmacy partnerships to enhance patient retention [1]. The long-term success of the $499 monthly self-pay model for Ozempic and Wegovy will depend on its ability to sustain affordability while continuing to innovate in GLP-1 and beyond.

References:
[1] https://www.ainvest.com/news/499-revolution-novo-nordisk-goodrx-reshaping-glp-1-market-access-pricing-dynamics-2508/
[2] https://www.inkl.com/news/goodrx-holdings-surges-5-after-hours-on-novo-nordisk-partnership-for-499-monthly-ozempic-wegovy-access
[3] https://www.tipranks.com/news/hims-hers-health-stock-falls-while-goodrx-rallies-on-deal-with-novo-nordisk
[4] https://www.benzinga.com/trading-ideas/movers/25/08/47220715/whats-going-on-with-hims-hers-shares-today-2