Novo Nordisk’s Ozempic and Wegovy No Longer in Short Supply, Creating Challenges for Hims & Hers
The U.S. Food and Drug Administration (FDA) announced on Friday that the shortages of Novo Nordisk’s (NYSE:NVO) widely used diabetes and weight-loss drugs, Ozempic and Wegovy, have officially ended. The news sent shockwaves across the market, particularly impacting shares of Hims & Hers Health (NYSE:HIMS), a company that had been producing compounded versions of these medications.
FDA Removes Ozempic and Wegovy from Shortage List
According to an updated FDA drug shortages database, supply constraints for all versions of Ozempic and Wegovy have now been resolved. Since 2022, these GLP-1 receptor agonists, collectively known as semaglutide, had faced unprecedented demand due to their effectiveness in treating obesity and diabetes. This supply crunch also impacted Eli Lilly’s (NYSE:LLY) competing drug, tirzepatide, which was declared free from shortage by the FDA in October 2024.
Implications for Hims & Hers Health (NYSE:HIMS)
Hims & Hers had significantly benefited from the shortage by introducing compounded versions of semaglutide at an 85% discount compared to the branded alternatives. The move proved successful, boosting HIMS shares as the company exceeded revenue and earnings expectations for consecutive quarters. However, with the official end of the shortage, Hims & Hers will no longer be allowed to produce identical compounded versions of Ozempic and Wegovy.
Market Reaction and Industry Impact
Novo Nordisk’s ability to stabilize supply could reshape the competitive landscape for weight-loss and diabetes treatments. While the end of the shortage benefits patients by ensuring consistent access to these medications, it challenges companies like Hims & Hers that leveraged regulatory allowances for compounding pharmacies to fill supply gaps.
With the FDA’s latest announcement, industry analysts will closely monitor how Novo Nordisk, Hims & Hers, and other pharmaceutical players adjust their strategies to align with the new market dynamics.
