Hims Halts Weight-Loss Pill Amid Controversy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVO?
Source: CNBC
- Product Withdrawal: Hims & Hers announced the cessation of its compounded weight-loss pill following legal threats from Novo Nordisk and feedback from industry stakeholders, reflecting the company's commitment to consumer safety.
- Escalating Legal Threats: Novo Nordisk accused Hims of 'illegal mass compounding' and plans to pursue legal and regulatory actions, highlighting the intense competition in the market and the need for intellectual property protection.
- FDA Intervention: The U.S. Food and Drug Administration announced plans to take legal action against Hims, including restricting access to ingredients, which could further negatively impact the company's operations and reputation.
- Advertising Strategy: Despite the controversy, Hims plans to run an advertisement during the Super Bowl, emphasizing the wealth gap as a health gap in America, indicating the company's intent to reshape its brand image through marketing strategies.
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Analyst Views on NVO
Wall Street analysts forecast NVO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVO is 54.67 USD with a low forecast of 42.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
4 Buy
3 Hold
1 Sell
Moderate Buy
Current: 43.340
Low
42.00
Averages
54.67
High
70.00
Current: 43.340
Low
42.00
Averages
54.67
High
70.00
About NVO
Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company's diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company's biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hims & Hers Halts Sales of Wegovy Drug Amid FDA Pressure
- Sales Halt Decision: Hims & Hers Health has decided to cease offering the compounded version of Novo Nordisk's Wegovy (semaglutide) pill after constructive discussions with industry stakeholders, reflecting the company's commitment to compliance and sensitivity to market dynamics.
- FDA Regulatory Pressure: FDA Commissioner Marty Makary announced plans to target companies manufacturing mass-market copycat drugs, indicating a stringent regulatory stance that could impact the market performance of similar products.
- Legal Threat Context: Novo Nordisk issued a legal threat against Hims & Hers Health on February 5, highlighting its strong concern over market competition, which may lead to further legal challenges for Hims & Hers in the future.
- Market Reaction: Following the cessation of the compounded drug sales, Hims & Hers experienced negative market reactions, reflecting investor concerns regarding the company's strategic adjustments and potentially impacting its long-term value creation capabilities.
See More
Hims & Hers Halts Copycat Weight-Loss Pill Amid Legal Threats
- Legal Threats Prompt Withdrawal: Hims & Hers has announced the cessation of its copycat Wegovy weight-loss pill following threats of legal action from Novo Nordisk and the FDA, highlighting the company's vulnerability under regulatory pressure.
- Rapid Market Response: The company had planned to launch the semaglutide-based weight-loss pill at a price of $49 per month, but the legal risks forced a retraction, potentially leading to a decline in customer trust.
- Advertising Plans Affected: Although Hims intended to run an advertisement during the Super Bowl addressing the 'health gap,' the emergence of legal issues may undermine the ad's impact and affect brand perception.
- Industry Backlash: Novo Nordisk accused Hims of 'illegal mass compounding' and noted that the FDA had previously warned them about deceptive advertising, reflecting significant dissatisfaction and caution within the industry regarding Hims' practices.
See More
Hims Halts Weight-Loss Pill Amid Controversy
- Product Withdrawal: Hims & Hers announced the cessation of its compounded weight-loss pill following legal threats from Novo Nordisk and feedback from industry stakeholders, reflecting the company's commitment to consumer safety.
- Escalating Legal Threats: Novo Nordisk accused Hims of 'illegal mass compounding' and plans to pursue legal and regulatory actions, highlighting the intense competition in the market and the need for intellectual property protection.
- FDA Intervention: The U.S. Food and Drug Administration announced plans to take legal action against Hims, including restricting access to ingredients, which could further negatively impact the company's operations and reputation.
- Advertising Strategy: Despite the controversy, Hims plans to run an advertisement during the Super Bowl, emphasizing the wealth gap as a health gap in America, indicating the company's intent to reshape its brand image through marketing strategies.
See More
Novo Nordisk Shares Plunge 15% Post Earnings
- Post-Earnings Decline: Novo Nordisk's stock plummeted nearly 15% following its earnings report, with an additional 6% drop the next day, indicating significant market concern regarding its future performance.
- Sales Guidance Dismal: The company anticipates a sales hit of 5% to 13% this year, primarily due to intense pricing pressures in the GLP-1 market, particularly from competitors like Eli Lilly.
- Intensifying Market Competition: Cramer highlighted that while Novo Nordisk's quarterly results were decent, its competitive edge in the GLP-1 sector is being eroded by Eli Lilly, potentially leading to further market share loss.
- Cautious Investment Outlook: Cramer suggests that although Novo Nordisk has potential, it should be viewed as a hold rather than a buy, especially given Eli Lilly's strong performance, reflecting a cautious stance on future growth prospects.
See More
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Geopolitical Concerns Among Wealthy Families: A report from J.P. Morgan Private Bank reveals that 20% of wealthy single-family offices identify geopolitics as their primary concern.
International vs. U.S. Perspectives: The report highlights that 74% of non-U.S. families and 57% of U.S. families consider geopolitics to be among their top five concerns.
See More
Hims & Hers Shares Plunge 13% After DOJ Referral
- Stock Price Drop: Hims & Hers (HIMS) shares fell 13% in after-hours trading on Friday after HHS General Counsel Mike Stuart referred the company to the DOJ for potential violations of drug safety laws, significantly undermining investor confidence.
- FDA Restrictions: FDA Commissioner Martin A Makary announced intentions to restrict the ingredients used by Hims as alternatives to FDA-approved drugs, which could adversely affect the company's product offerings and market competitiveness.
- New Product Launch Context: The investigation coincides with Hims launching a compounded version of Novo Nordisk's (NVO) obesity pill Wegovy on Thursday, creating a stark contrast between market expectations for the product and the negative implications of the investigation, potentially clouding sales prospects.
- Market Reaction Analysis: Investor concerns about Hims' future are evident, as the sharp decline in stock price not only reflects doubts about the company's compliance but may also impact its standing in the highly competitive health product market.
See More
Hims & Hers Halts Sales of Wegovy Drug Amid FDA Pressure
- Sales Halt Decision: Hims & Hers Health has decided to cease offering the compounded version of Novo Nordisk's Wegovy (semaglutide) pill after constructive discussions with industry stakeholders, reflecting the company's commitment to compliance and sensitivity to market dynamics.
- FDA Regulatory Pressure: FDA Commissioner Marty Makary announced plans to target companies manufacturing mass-market copycat drugs, indicating a stringent regulatory stance that could impact the market performance of similar products.
- Legal Threat Context: Novo Nordisk issued a legal threat against Hims & Hers Health on February 5, highlighting its strong concern over market competition, which may lead to further legal challenges for Hims & Hers in the future.
- Market Reaction: Following the cessation of the compounded drug sales, Hims & Hers experienced negative market reactions, reflecting investor concerns regarding the company's strategic adjustments and potentially impacting its long-term value creation capabilities.
See More
Hims & Hers Halts Copycat Weight-Loss Pill Amid Legal Threats
- Legal Threats Prompt Withdrawal: Hims & Hers has announced the cessation of its copycat Wegovy weight-loss pill following threats of legal action from Novo Nordisk and the FDA, highlighting the company's vulnerability under regulatory pressure.
- Rapid Market Response: The company had planned to launch the semaglutide-based weight-loss pill at a price of $49 per month, but the legal risks forced a retraction, potentially leading to a decline in customer trust.
- Advertising Plans Affected: Although Hims intended to run an advertisement during the Super Bowl addressing the 'health gap,' the emergence of legal issues may undermine the ad's impact and affect brand perception.
- Industry Backlash: Novo Nordisk accused Hims of 'illegal mass compounding' and noted that the FDA had previously warned them about deceptive advertising, reflecting significant dissatisfaction and caution within the industry regarding Hims' practices.
See More
Hims Halts Weight-Loss Pill Amid Controversy
- Product Withdrawal: Hims & Hers announced the cessation of its compounded weight-loss pill following legal threats from Novo Nordisk and feedback from industry stakeholders, reflecting the company's commitment to consumer safety.
- Escalating Legal Threats: Novo Nordisk accused Hims of 'illegal mass compounding' and plans to pursue legal and regulatory actions, highlighting the intense competition in the market and the need for intellectual property protection.
- FDA Intervention: The U.S. Food and Drug Administration announced plans to take legal action against Hims, including restricting access to ingredients, which could further negatively impact the company's operations and reputation.
- Advertising Strategy: Despite the controversy, Hims plans to run an advertisement during the Super Bowl, emphasizing the wealth gap as a health gap in America, indicating the company's intent to reshape its brand image through marketing strategies.
See More
Novo Nordisk Shares Plunge 15% Post Earnings
- Post-Earnings Decline: Novo Nordisk's stock plummeted nearly 15% following its earnings report, with an additional 6% drop the next day, indicating significant market concern regarding its future performance.
- Sales Guidance Dismal: The company anticipates a sales hit of 5% to 13% this year, primarily due to intense pricing pressures in the GLP-1 market, particularly from competitors like Eli Lilly.
- Intensifying Market Competition: Cramer highlighted that while Novo Nordisk's quarterly results were decent, its competitive edge in the GLP-1 sector is being eroded by Eli Lilly, potentially leading to further market share loss.
- Cautious Investment Outlook: Cramer suggests that although Novo Nordisk has potential, it should be viewed as a hold rather than a buy, especially given Eli Lilly's strong performance, reflecting a cautious stance on future growth prospects.
See More
Affluent Families Concerned About Geopolitical Issues, Yet Hesitant to Invest in AI, Crypto, or Gold
Geopolitical Concerns Among Wealthy Families: A report from J.P. Morgan Private Bank reveals that 20% of wealthy single-family offices identify geopolitics as their primary concern.
International vs. U.S. Perspectives: The report highlights that 74% of non-U.S. families and 57% of U.S. families consider geopolitics to be among their top five concerns.
See More
Hims & Hers Shares Plunge 13% After DOJ Referral
- Stock Price Drop: Hims & Hers (HIMS) shares fell 13% in after-hours trading on Friday after HHS General Counsel Mike Stuart referred the company to the DOJ for potential violations of drug safety laws, significantly undermining investor confidence.
- FDA Restrictions: FDA Commissioner Martin A Makary announced intentions to restrict the ingredients used by Hims as alternatives to FDA-approved drugs, which could adversely affect the company's product offerings and market competitiveness.
- New Product Launch Context: The investigation coincides with Hims launching a compounded version of Novo Nordisk's (NVO) obesity pill Wegovy on Thursday, creating a stark contrast between market expectations for the product and the negative implications of the investigation, potentially clouding sales prospects.
- Market Reaction Analysis: Investor concerns about Hims' future are evident, as the sharp decline in stock price not only reflects doubts about the company's compliance but may also impact its standing in the highly competitive health product market.
See More
