Regulatory Shift and Legal Action Boost Novo Nordisk Shares

Novo Nordisk DK0062498333

Shares of the Danish pharmaceutical giant Novo Nordisk surged by more than 8% on Monday. This significant gain followed a dual development that alleviated competitive pressures in the lucrative U.S. weight-loss drug market.

The positive momentum began when telemedicine provider Hims & Hers announced over the weekend that it would halt sales of its low-cost semaglutide product. Semaglutide is the active ingredient in Novo Nordisk’s blockbuster drug, Wegovy. The competitor’s offering, priced at a fraction of Wegovy’s cost, had been viewed by the market as a substantial threat to Novo’s pricing power in the multi-billion dollar sector. Its withdrawal was announced just days after its launch.

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