Hims & Hers Shakes Up Weight Loss Market with $49 Pill, Pressuring Pharma Giants
San Francisco, Thursday, 5 February 2026.
Hims & Hers disrupted the sector today by launching a $49 compounded oral semaglutide option, causing Novo Nordisk shares to drop 7% while offering a significantly cheaper alternative to Wegovy.
Market Disruption and Immediate Volatility
The announcement triggered an immediate divergence in stock performance this Thursday. While shares of Hims & Hers Health (HIMS) surged 19% as investors rallied behind the disruptive pricing strategy [8], the pharmaceutical incumbents controlling the weight-loss narrative faced sharp declines. Copenhagen-listed shares of Novo Nordisk (NVO) dropped 7% on the news [1], and Eli Lilly (LLY) saw its stock fall 6.1% shortly after the opening bell [1]. This market reaction underscores the financial sector’s sensitivity to competitive pricing in the obesity drug market, particularly as Hims & Hers undercuts the established players with a price point of $49 per month for its compounded oral semaglutide [1].
Aggressive Pricing Strategy
The core of this market shake-up is the stark price differential between the new generic offering and branded alternatives. Hims & Hers is offering the compounded pill at an introductory rate of $49 for the first month [4]. This represents a discount of approximately 67.114% compared to the $149 price point at which Novo Nordisk sells its branded Wegovy pill [1]. Following the introductory period, the pricing structure remains competitive; patients on a five-month subscription will pay $99 monthly [8]. In comparison, some reports indicate that Novo Nordisk charges as much as $199 for its version, further highlighting the gap Hims & Hers aims to exploit [8].
Navigating Patent Walls via Compounding
Investors may wonder how Hims & Hers can legally market a copy of a drug that is under patent protection in the U.S. until 2032 [1]. The company relies on the regulatory framework for compounded medications, which allows for the creation of “personalized” drugs that are not subject to the same patent restrictions as mass-manufactured pharmaceuticals [1]. Hims & Hers states that its compounded product utilizes a different formulation and delivery system than the FDA-approved oral semaglutide [1]. However, it is critical to note that these compounded products are not FDA-approved, although the company sources its active pharmaceutical ingredients from FDA-registered facilities [4][5].
Infrastructure and Future Competition
Hims & Hers has been quietly building the capacity to support this scale of operation, having doubled its facility footprint in 2025 to over 92,900 square meters [4]. This infrastructure supports a strategy designed to capture a share of the 170,000 people Novo Nordisk CEO Mike Doustdar reported were already taking the branded Wegovy pill as of early January [1]. The pressure is now on Eli Lilly, which does not yet have an oral option on the market but is expected to launch a rival pill in the first half of 2026, pending FDA approval [1]. With Novo Nordisk already warning of unprecedented pricing pressure [8], the sector is entering a new phase of intense price-based competition.