Novo Nordisk and Hims & Hers have apparently decided to jointly make money fighting it out in court, dropping their patent infringement case after the two companies agreed that Hims would sell the newly branded Ozempic and Wegovy through its platform at the same price as other telehealth providers.
For Hames, who saw his stock rocket nearly 50% early Monday, that’s roughly the equivalent of buying a store and walking away with a job offer. The company sold a $49 compounding kit of Novo’s Vigovi pills, a product Novo described as a “massively illegal compound” and the FDA called sufficient reason to threaten decisive action against compounding pharmacies. He took out the pill. However, the case was pursued. And now, somehow, the whole thing ends in friendship.
Novo CEO Mike Dostdar told CNBC that he doesn’t foresee reopening the case, which is the diplomatic equivalent of “we win.” Under the deal, Hames will completely stop advertising compounded GLP-1 drugs and limit compounded prescriptions to cases where there is a clinical need, which Hames’ lawyers probably read seventeen times before signing.
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The peace agreement was signed after months of real chaos. Nouveau and Himes had tried a partnership once before, a collaboration that ended after just two months after Himes accused him of deceptive marketing. Dostdar pointedly notes that the arrangement is “a very different situation”, which is the corporate version of “I promise it’s different this time” after a very public hiatus.
The broader context is important here. Semaglutide’s US patent runs until 2032, the compound’s flaws are closing fast, and Novo has cleared its supply shortage, taking advantage of the original legal opening hams. Hamz CEO Andrew Dudham is now turning to the “rapidly changing landscape” language and talking about bringing new treatments to the platform. A beautiful exit is disguised as a growth strategy.
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Novo Nordisk
