Novo Nordisk shares rebound as FDA targets illegal drug copies

By Jacob Gronholt-Pedersen

COPENHAGEN, Feb 6 (Reuters) – Shares in Danish drugmaker Novo Nordisk gained 4.7% in early trading on Friday, recovering some of the previous two sessions’ steep losses, after the U.S. Food and Drug Administration (FDA) pledged to address mass-marketing of unapproved drugs.

The stock plunged nearly 8% on Thursday after telehealth company Hims and Hers Health launched a significantly cheaper $49 compounded version of Novo Nordisk’s FDA-approved Wegovy weight-loss pill.

“FDA will take swift action against companies mass-marketing illegal copycat drugs, claiming they are similar to FDA-approved products,” FDA Commissioner Marty Makary said on X without naming any companies.

“The FDA cannot verify the quality, safety or effectiveness of non-approved drugs,” he said.

Novo warned on Wednesday of unprecedented price pressure on its weight-loss medicines and dropped its full-year forecast, triggering a 17% slump in its share price.

Novo’s shares are near their lowest since Wegovy was introduced in June 2021. 

By 0848 GMT the shares were up 4.9% at 294.50 Danish crowns ($46.50).

($1 = 6.3327 Danish crowns)

(Reporting by Jacob Gronholt-PedersenEditing by David Goodman)