NOVO AND GOODRX TEAM UP WILL IT END LIKE HIMS AND HERS AND BLOW UP

GLP-1 Alert—GoodRx Makes Weight-Loss Meds Affordable (and the Market Goes Wild)

What Just Dropped:

• GoodRx & Novo Nordisk teamed up to offer Ozempic and Wegovy for $499/month to cash-paying patients—available across 70,000 U.S. pharmacies.

  
  

• GoodRx shares surged ~28–35% riding the news wave—traders loved the move toward broader access.

  
  

Why This Move Matters:

• Dramatically lower cost vs. previous list prices ($936 for Ozempic, $1,349 for Wegovy) — still high, but within reach for uninsured patients.

  
  

• For many people denied coverage for GLP-1s, this offer solves a real accessibility problem. GoodRx is uniquely positioned to reach them.

  
  

Shareholder & Industry Reaction:

• GoodRx stock spikes—major signal that investors see value in expanding access via cash-pay channels.

  
  

• Novo Nordisk also edged up (+5%) after FDA approval added Wegovy for treating MASH, a serious liver condition.

  
  

Bigger Picture:

• This is part of a broader trend: Other telehealth platforms (like Ro and LifeMD) also expanded GLP-1 access earlier this year.

  
  

• Pricing wars heating up: With Eli Lilly and other competitors entering the GLP-1 space, pricing pressure is mounting. Novo’s move is a direct answer.

💊 Hims & Hers and Novo Nordisk: A Breakup That Rocked the Weight-Loss Drug Market

The weight-loss drug boom has been one of the hottest stories in healthcare and investing over the past two years, with GLP-1 drugs like Wegovy and Ozempic dominating headlines. But not all partnerships in this space are built to last.

Recently, Novo Nordisk (maker of Wegovy) ended its partnership with Hims & Hers Health (HIMS)—a move that rattled both Wall Street and the telehealth sector. Let’s break down what happened, why it matters, and how it shook up the stocks.

🚨 Why Novo Nordisk Pulled the Plug

At the start of 2025, Novo Nordisk teamed up with Hims & Hers to expand access to GLP-1 medications. The idea made sense—Hims & Hers already had a direct-to-consumer telehealth platform, while Novo was struggling to keep up with overwhelming demand for Wegovy.

But the honeymoon didn’t last long. By mid-year, Novo accused Hims & Hers of selling compounded versions of semaglutide (the active ingredient in Wegovy) that were not FDA-approved. These “knockoff” versions were marketed as cheaper alternatives—sometimes starting at $199/month, compared to the official $499/month cash price offered by NovoCare and GoodRx.

Novo said these compounded versions:

• Risked patient safety because they weren’t tested to the same standards

• Misled consumers into thinking they were equivalent to Wegovy

• Undermined Novo’s brand and pricing strategy

As a result, Novo terminated the deal and cut off Hims & Hers from its official supply chain.

📉 How the Market Reacted

The fallout was swift:

• Hims & Hers (HIMS): Shares plunged double digits after the breakup was announced, wiping out much of the stock’s 2025 rally. Investors worried that losing Novo’s pipeline would cripple Hims & Hers’ growth in the lucrative weight-loss market.

• Novo Nordisk (NVO): Shares were relatively stable and even rebounded later in August after the FDA approved Wegovy for treating liver disease (MASH), which opened up another major revenue stream.

🔑 Why This Matters

The Novo–Hims & Hers breakup highlights several key lessons for investors and patients alike:

1. Patient Safety > Growth

   
   

   In the rush to meet demand, cutting corners with compounded versions may look attractive—but it creates regulatory and reputational risks.

2. Pricing Pressure is Real

   
   

   With GoodRx offering Wegovy at $499/month, and Eli Lilly gearing up with oral GLP-1 drugs, competition is fierce. Hims & Hers tried to compete on price, but that backfired.

3. Partnerships Are Fragile

   
   

   When the goals of a telehealth startup and a global pharma giant don’t align, the relationship can unravel quickly—and take stock prices with it.

⚖️ The Bottom Line

The end of the Novo–Hims & Hers partnership is a cautionary tale: in the world of blockbuster drugs, credibility and compliance matter as much as growth.

• Novo Nordisk walks away with its reputation intact, a new FDA approval in hand, and continued pricing power.

• Hims & Hers, meanwhile, must regroup and convince investors it can still compete in telehealth without direct access to one of the world’s most in-demand drugs.

For investors, this split is a reminder that in the GLP-1 gold rush, not every miner strikes gold.

Why Eli Lilly’s Latest Weight-Loss Drug Didn’t Impress

1. Big Expectations, Modest Results

Eli Lilly’s experimental oral GLP-1 pill, orforglipron, was widely anticipated to match the success of its injectable siblings—especially Zepbound and Mounjaro, which have delivered body weight reductions up to 21% in trials. However, orforglipron only achieved about 12.4% weight loss over 72 weeks—solid, but notably weaker than expectations and rival injectables.    

Analysts expected closer to 15%, in line with Novo Nordisk’s oral semaglutide and injectable benchmarks. The pill underperformed, leaving investors disappointed.   

2. Side Effects: No Relief

Another blow: the side effects mirrored the harsh gastrointestinal symptoms patients often endure with injectables. Nausea, vomiting, diarrhea, and other discomforts occurred at similar—or even higher—rates in orforglipron trials. Discontinuation rates were also concerning: around 10.3% dropped out due to adverse events versus 2.6% for placebo.   

Together, these results dampened the pill’s appeal—insufficient advantage in effectiveness or tolerability.

3. Market Reaction: A Steep Sell-Off

The immediate consequence? A dramatic drop in stock price—the largest single-day percentage decline in Eli Lilly’s history (over 14%).   

• Market value lost: Roughly $100 billion wiped off the company’s valuation.  

• Investors reacted: Jefferies slashed orforglipron’s future sales forecast dramatically (from $42B to $25B) and downgraded projections.  

• Novo Nordisk gained: Meanwhile, rival Novo’s stock received a boost, particularly as their oral GLP-1 alternative looked comparatively stronger. 

• Insider confidence: In a show of internal belief, top executives—including CEO David Ricks—purchased millions in Lilly shares shortly after the plunge.  

4. What It All Means

Here’s the takeaway:

• Efficacy matters: A pill needs to hit—or exceed—injectable performance to truly shake up the market. Orforglipron fell short.

• Access is attractive, but not enough: Convenience alone won’t compensate if effectiveness lags.

• Investors demand more: In fast-moving, high-stakes markets like obesity treatment, even small performance gaps can trigger big reactions.

• Lilly’s empire still stands: Their injectable powerhouse—Zepbound and Mounjaro—is thriving, and orforglipron, despite setbacks, may still serve as a scalable supplement in their obesity portfolio.