Investing.com -- Shares of Hims and Hers (NYSE: HIMS ) fell 3% amidst news of Novo Nordisk (NYSE: NVO ) introducing NovoCare Pharmacy, which directly impacts the competitive landscape by offering FDA-approved Wegovy (semaglutide) at a reduced monthly cost and with the convenience of home delivery for cash-paying patients.

The decline follows Novo Nordisk’s press release on March 5, 2025, announcing the launch of NovoCare Pharmacy, a service providing Wegovy, a medication for obesity, at $499 per month to patients paying out of pocket. This move potentially disrupts the market for Hims and Hers, which also operates in the direct-to-consumer health and wellness space.

Novo Nordisk’s initiative is designed to support uninsured patients or those whose insurance plans do not cover obesity medications. The company highlights that 90% of patients with coverage for Wegovy have a co-pay ranging from $0 to $25 per month. The introduction of NovoCare Pharmacy is part of Novo Nordisk’s strategy to improve medication affordability and access, ensuring the availability of authentic, FDA-approved Wegovy to patients, especially in the face of risks posed by counterfeit or illegitimate compounded semaglutide products.

The service, fulfilled by CenterWell Pharmacy, recognized for customer satisfaction and patient care, will include benefit verification, refill reminders, and support from a NovoCare case manager, further enhancing patient experience.

Novo Nordisk’s announcement comes after the FDA confirmed that the shortage of Wegovy has been resolved, with supply now meeting and expected to exceed demand in the U.S. The company’s commitment to patient safety and access to authentic medications is emphasized, with additional measures being taken to ensure the integrity of their products.

Hims and Hers’ stock movement reflects the market’s reaction to this significant development by a competitor, which could potentially alter the dynamics within the direct-to-consumer pharmaceutical industry. The company’s investors are likely weighing the implications of Novo Nordisk’s aggressive pricing and distribution strategy on Hims and Hers’ market share and future revenue streams.

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