Episode summary
Novo Says It’s Suing Hims to Halt Obesity Drug Copycats
Bloomberg Businessweek Daily
· · 10 min · Guests: Madison Muller, Mike Doustdar
Summary
Novo Nordisk is taking a more aggressive legal stance against Hims & Hers, suing for patent infringement over semaglutide and trying to stop both copycat pills and compounded injections tied to Wegovy and Ozempic. The guest said that marks a real escalation: until now, Novo and Lilly had mostly challenged how telehealth and compounders marketed the drugs, not patent infringement itself.
The discussion framed the lawsuit as part of a wider gray area in the post-shortage GLP-1 market. The guest said the FDA has done little to crack down on compounded versions, and companies like Hims kept selling them while interpreting the rules for themselves. Novo’s decision reflects pressure from a market where its drugs face faster patent run-off than Eli Lilly’s, and where Lilly has been more aggressive about defending its franchise and building beyond obesity.
The conversation also widened to the economics of obesity drugs. The guest said falling cash-pay prices and direct-to-consumer discounts have already changed patient behavior, and even cheaper generics may not immediately displace branded drugs if patients are used to what works. Lilly’s recent Orna Therapeutics deal was presented as evidence that the industry cannot rely on obesity alone and must keep investing in the next wave of therapies.
Key takeaways
- The guest said Novo’s patent suit against Hims is a first-of-its-kind escalation over compounded semaglutide, not just marketing practices.
- The guest said the FDA’s limited enforcement has let compounding continue in a legal gray zone after the shortage ended.
- The guest said Novo faces more pressure than Eli Lilly because its drugs have shorter remaining patent life and it handled the shortage less effectively.
- The guest said Lilly is diversifying beyond obesity while Novo is being forced into a more aggressive defense of its current franchise.
- The guest said cheaper generics may not instantly win patients away from branded GLP-1s because many already pay cash and stay with what works.
Notable quotes
“Novo is suing on the grounds of patent infringement, which is something we haven't seen before”
“That is the assumption. Yes. That they but the the problem is that the FDA really hasn't said much of anything”
“So that's a big deal. That's a big escalation, and it sort of shows the more aggressive strategy that Novo's taking”
“they really are, under a lot of pressure right now”
How the episode opens
I just wanna start with the lawsuit because I I was pretty surprised last week when we got the news that they were going to do this because I thought there was no more it wasn't legally allowed by the FDA to comp for companies to compound medicine anymore for well, not any medicine, but GLP ones because there's no longer a shortage. Wasn't that the loophole that these companies were using? Exactly.
So it was a big I mean, kind of a risky bet that HIMSS was taking that the FDA just wouldn't do anything about it. But that is sort of what we've seen happen the last couple of years since the shortage ended. There's been really very little action from the FDA in terms of cracking down on this proliferation of compounded GLP one drugs.
And so HIMSS has continued doing it. A lot of other companies have continued doing it. Breaking the law by doing it?
That is the assumption. Yes. That they but the the problem is that the FDA really hasn't said much of anything.
So it was kind of up to these companies to, like, interpret the law themselves. So in this gray area, they've continued doing it, and that's part of the problem is that it was a little bit unclear at least to maybe the general public or, to some people, like, what the FDA was really going to do. And so they've just continued to do it.
Some companies have pulled back. Like, Roe, for example, stopped compounding after the shortages ended, and HIMSS has kept doing it. And so far, I mean, until now, there has been really little action either from Novo, from the FDA.
And finally, I think both of them said enough is enough. Alright. So Novo files this lawsuit.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- obesity drug lawsuits
- patent infringement
- semaglutide copycats
- compounded medications
- drug pricing and competition
Companies and tickers mentioned
- NVO
- HIMS
- Novo Nordisk
- Hims & Hers Health Inc.
Watch the episode
Watch “Novo Says It’s Suing Hims to Halt Obesity Drug Copycats” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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