Morningstar

Hims and Novo Nordisk: Compounded Oral Semaglutide Launch Challenges Legal Framework

Hims’ new product could throw a curveball at the Wegovy pill’s trajectory.

The Novo Nordisk logo seen on waving flags.
© Novo Nordisk
Securities in This Article
Novo Nordisk AS Class B
(NOVO B)
Hims & Hers Health Inc Ordinary Shares - Class A
(HIMS)

Hims & Hers announced the launch of oral semaglutide on Feb. 5. The new treatment plan starts at USD 49 per month and directly competes with Novo Nordisk’s Wegovy pill, which launched in January 2026. Hims and Novo shares are down 6% and 8%, respectively.

Why it matters: Novo’s Wegovy pill launch has had a strong kickoff, but Hims’ new product could throw a curveball at this trajectory. The two firms have a contentious relationship following their short-lived collaboration, which ended in June 2025.

  • Hims still offers personalized semaglutide injectables and has not yet faced any material litigation or regulatory challenges. But launching oral semaglutide so soon after the branded launch, particularly absent any shortages, could risk triggering an attack from Novo and government agencies.
  • Novo’s launch of the Wegovy pill is one bright spot in its overall weak 2026 outlook, and maximizing its launch ahead of Lilly’s potential second-quarter launch of competing oral orforglipron has been their key focus. Hims is jeopardizing this valuable time window and is likely to trigger legal action.

The bottom line: We maintain our fair value estimates for no-moat Hims (USD 25) and wide-moat Novo Nordisk (DKK 372/USD 59). We think our High uncertainty rating for Novo and Very High uncertainty rating for Hims help account for the significant uncertainty around the oral GLP-1 market in 2026.

  • A range of outcomes is possible, including more Food and Drug Administration restrictions on 503A compounded drugs. Since oral semaglutide has never been on a shortage list, the grey area of legality in which Hims operates appears to be moving closer to a red line, in our view.
  • If allowed to stay on the market, the Hims oral could significantly limit the growth of branded obesity drug sales at Novo and Lilly. That said, a lack of legal or regulatory action regarding this launch could put other branded launches at risk in the future, raising doubts about its approval.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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