Why Novo Nordisk Stock Popped on Friday
Novo Nordisk (NYSE: NVO) stock ran up 3.5% through 10:05 a.m. ET Friday morning on some good news for it (and for Eli Lilly) that's also probably bad news for Hims & Hers Health (NYSE: HIMS).
This morning, the U.S. Food and Drug Administration (FDA) issued a "declaratory order" confirming the "resolution of shortages of semaglutide injection products ... Ozempic and Wegovy."
Two of Novo's biggest money-makers, injectable GLP-1 weight loss drugs Wegovy and Ozempic, have been on the FDA's official drug shortage list since March and August 2022, respectively. As a result, drug compounding companies like Hims & Hers have till now been allowed to compound drugs similar to Novo's, albeit not officially FDA-approved, and sell them into the weight loss market. They've essentially been free-riding on Novo's coattails and taking sales that would otherwise go to Novo (or Lilly).
Source Fool.com
