The GLP-1 Pill Battle Just Got More Interesting

In a direct challenge to the booming obesity-drug business, telehealth company Hims & Hers has rolled out what it says is the cheapest GLP-1 weight-loss pill in the US—and it's already rattling Wall Street and one of the industry's biggest players. The online platform is offering compounded oral semaglutide for $49 for the first month and $99 a month afterward for those who commit to a five-month plan, undercutting Novo Nordisk's new Wegovy pill by about $100 a month, reports Reuters. Novo priced its pill at $149 initially and $199 after that; Eli Lilly is expected to debut its own oral obesity drug later this year.

"Whether a patient needs a specific dosage adjustment or prefers a compounded semaglutide pill over an injection, our platform now supports a deeper level of personalization," Hims' Dr. Craig Primack says in a release, per the AP. Investors quickly reacted, reports Reuters: Novo's shares slid 8.6% and Lilly's fell 6% after the Hims announcement and Novo's warning of "unprecedented" pricing pressure on its weight-loss portfolio. Novo is vowing a legal and regulatory fight. The Danish drugmaker argues that Hims' large-scale compounding of semaglutide is unlawful and says its own pill uses proprietary technology to improve absorption.

People spending $49 on a Hims pill would be throwing their money away, Novo CEO Mike Doustdar told investors on Thursday, while a spokesperson said the company will move to protect patients and intellectual property. Hims counters that it uses liposome-based technology to aid absorption and insists it hasn't compromised on safety or effectiveness, though its compounded drugs aren't FDA approved and haven't gone through clinical trials.

The clash highlights a fast-expanding gray zone in the weight-loss market. US rules allow compounders to produce versions of branded drugs, often with small tweaks in dosage or regimen, particularly when there are shortages. Hims has already been selling compounded injectable GLP-1 drugs and previously drew an FDA warning for marketing its semaglutide as having the "same active ingredient" as Ozempic and Wegovy. Analysts say the new pill could open the door to a full-blown price battle if compounders can reliably supply oral GLP-1s at scale—potentially including Lilly's upcoming pill—while testing how far companies like Hims can push the regulatory boundaries before courts or the FDA push back.