Why Novo Nordisk Stock Dropped on Monday, but Eli Lilly and Him & Hers Health Popped

Previously, pharmacy currency income were priced astatine $650 per month, truthful Novo has efficaciously chopped prices by 23% for a large portion of its market. Novo Nordisk investors whitethorn beryllium worrying that Novo is losing marketplace share, and whitethorn request to chopped prices adjacent further to vie with terms cuts announced by Eli Lilly. Last month, Lilly chopped the terms of astatine slightest 1 dosage size of its competing Zepbound GLP-1 cause to $349, erstwhile purchased straight from Lilly.

Long communicative short, investors look to beryllium speechmaking this quality arsenic atrocious for Novo (less gross and possibly losing marketplace share), but correspondingly bully for Eli Lilly, which is inactive underpricing its rival connected astatine slightest 1 dosage.

At the aforesaid time, Hims & Hers Health banal is continuing to summation spot connected the backmost of reports retired past week, that the company's exit from the GLP-1 marketplace whitethorn not beryllium arsenic imminent arsenic feared. On Wednesday past week, The Wall Street Journal reported that Hims & Hers "will support offering pharmacy-made, oregon compounded, versions of Ozempic and Wegovy tweaked to idiosyncratic prescriptions."

As the Journal explained, "current instrumentality ... allows compounding pharmacies to marque special, individualized versions of drugs that aren't disposable commercially." So portion Hims & Hers has benefited mightily from being capable to wide marketplace Ozempic, Wegovy, Mounjaro, and Zepbound lookalikes to capable a spread successful proviso from the drugs' inventors, and portion that proviso spread is going away, Hims & Hers whitethorn inactive beryllium capable to marketplace copycat drugs successful smaller quantities, and not beryllium forced retired of this marketplace wholly aft all. Such income mightiness adjacent connection Hims & Hers amended nett margins owed to their personalization.