Novo Nordisk Dropped legal case against telehealth provider His and hers On patent infringement, Himes will sell Novo’s branded drugs through its platform after the two companies agreed.
“We have decided to drop the current court proceedings and we reserve the right to bring it back if necessary, but I don’t foresee that happening,” CEO Mike Doustder told CNBC’s Charlotte Reed on Monday.
Under the agreement, Himes will provide access to injectable and oral semaglutide, marketed as Ozempic and Vegovi, the same as other telehealth platforms, and Himes will no longer advertise the combined GLP-1 drugs on its platform or in its marketing, the companies said in statements Monday.
Shares of Himes rose as much as 50% in premarket trading. Novo’s Copenhagen-listed stock rose 1.7%.
In February, Novo said it would sue Himes for what it called “mass unlawful collusion” after it announced it was selling a copycat version of the Vigovi pill for $49, about $100 less than what Novo sells branded pills through its direct-to-consumer platform NovoCare.
Himes has made huge profits selling copycat versions of a blockbuster weight-loss drug through a loophole in US rules that allow companies other than patent holders to sell it if they have a deficiency.
Although there was a shortage of semaglutide in the early days of the drug, Novo solved supply constraints as it ramped up production. However, Himes continued to sell copycat versions of the drugs, arguing that the copies were “personal” and therefore legal.
Semaglutide is patent protected in the US until 2032.
Last year, Novo and Hims Telehealth partnered to offer discounted weight loss jobs to the company’s customers. Novo ended the collaboration after just two months, citing Himes’ use of “deceptive” marketing that put patient safety at risk.
“It’s a very different situation than the last time we did it,” Daoustdar told CNBC.
“After receiving our products, Himes and Hers have agreed that they will no longer advertise, promote or sell the combined products to the general public,” he said, adding that Himes has now agreed to change its business model to reserve the combined versions “only for the rare occasions when they are needed”.
Novo now has more than 600,000 Vegovi pill scripts, Doustdar said.
At the time of the Wegovi pill’s launch in January, Doustdar acknowledged that there were question marks, “somewhat boosted by our competitor,” that restrictions could limit the pill’s uptake.
“Well, I have news for you, it’s absolutely not,” he said. “People are really interested because it’s the most effective pill on the market right now.”
Himes’ existing patients on combination semaglutide “will have the opportunity to transition to an FDA-approved medication when determined clinically appropriate by their provider,” Himes said in a statement.
