Weight-loss drugmakers Eli Lilly and Novo Nordisk fell after telehealth company Hims & Hers announced Thursday it will offer a copy of the newly launched Wegovy pill for $49, far less than the $149 Novo sells the branded pill for.
Copenhagen-listed shares of Novo dropped 7% on the news, while Eli Lilly stock fell 6.1% shortly after the opening bell.
Hims & Hers stock soared 10%.
Novo launched the Wegovy pill in the U.S. early January and CEO Mike Doustdar told CNBC on Wednesday that 170,000Â people were already taking the medication.
Hims & Hers had previously been offering compounded semaglutide, the active ingredient in Novo's blockbuster drugs Ozempic and Wegovy, in an injectable format, and is now extending the offering to include the oral version.
Even though semaglutide's patent is protected in the U.S. until 2032, Hims says that itscopies are "personalized," and therefore legal.
"This compounded product uses a different formulation and delivery system than FDA-approved oral semaglutide," the company said in the announcement.
"This once-a-day pill has the same active ingredient as Wegovy and empowers providers to tailor treatment plans specifically for those who prefer to avoid needles or need smaller doses to help to balance side-effects."
Lilly doesn't yet have an oral option on the market but is expected to launch a rival pill in the first half of this year, pending Food and Drug Administration approval.
CNBC couldn't immediately reach Novo Nordisk for a comment.
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