What You Need to Know
• Novo Nordisk (NVO) surged 5% after the FDA declared the GLP-1 drug shortage over.
• Hims & Hers (HIMS) plummeted 25% as compounded versions of Wegovy and Ozempic face regulatory challenges.
• Eli Lilly (LLY) remains a strong competitor with Mounjaro and Zepbound.
• Analysts project the weight-loss drug market to exceed $150 billion annually after 2030.
Market Reaction
Novo Nordisk (NVO) jumped 5% Friday after the FDA announced that the shortage of its GLP-1 weight-loss drugs, Wegovy and Ozempic, is officially over. The move is a major win for Novo Nordisk, as it regains full pricing power and distribution control, limiting competition from compounding pharmacies that had been offering lower-cost alternatives. With supply constraints lifted, the company is poised for stronger revenue growth in the coming quarters.
However, the FDA’s decision dealt a heavy blow to Hims & Hers (HIMS), a telehealth company that provides compounded versions of GLP-1 medications. Shares of HIMS cratered more than 25% as the company faces potential restrictions on selling its alternative weight-loss treatments. Without the supply shortage, compounding pharmacies have little regulatory justification for offering these drugs, cutting off a key growth avenue.
Eli Lilly (LLY), Novo Nordisk’s biggest rival in the GLP-1 space, saw a more muted reaction, with shares rising just 1.2%. While Novo Nordisk benefits from increased control, Eli Lilly’s Mounjaro and Zepbound continue to gain traction, keeping the competition intense.
The Weight Loss Market War
The FDA’s ruling escalates the battle between Novo Nordisk and Eli Lilly, the two dominant players in the booming weight-loss drug market. Both companies are aggressively expanding their GLP-1 franchises, with Eli Lilly’s Mounjaro and Zepbound posing stiff competition to Wegovy and Ozempic.
As demand for effective obesity treatments skyrockets, analysts project the weight-loss drug market to exceed $150 billion annually after 2030. Both companies are ramping up production, investing in research, and seeking expanded regulatory approvals to solidify their market positions. The resolution of supply issues now shifts the focus to pricing, insurance coverage, and long-term efficacy—key factors that will shape the future of the GLP-1 industry.
The Oracle Says:
“The Oracle says Novo Nordisk’s stock has more room to run as supply normalizes and demand remains strong. However, the weight-loss drug war is far from over—keep an eye on Eli Lilly’s next move.”
