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Investing.com -- Hims & Hers Health (NYSE:HIMS) stock edged lower on Tuesday, extending its 10% decline following disappointing earnings, as Novo Nordisk (NYSE:NVO) announced 14 new lawsuits targeting companies involved in producing and marketing compounded semaglutide products.
The telehealth company’s shares faced additional pressure as Novo Nordisk specifically targeted telehealth providers that allegedly "violate state corporate practice of medicine laws by improperly influencing doctors’ decisions and steering patients toward knockoff compounded semaglutide." The Danish pharmaceutical giant has now filed 132 complaints across 40 states, resulting in 44 permanent injunctions against defendants in similar cases.
Novo Nordisk’s legal action comes after the FDA issued its latest warning on July 29 about the dangers of compounded GLP-1 drugs, citing reports of patients requiring hospitalization after accidentally administering up to 20 times the intended dose.
The lawsuits expand into new areas, including pharmacies producing unapproved compounded semaglutide under what Novo Nordisk calls "the fake guise of personalization" and telehealth companies where "corporations, not doctors, improperly steer patient care to compounded semaglutide drugs."
According to Novo Nordisk, independent data shows that many compounded semaglutide products rely on synthetic active pharmaceutical ingredients imported from facilities in China that lack FDA oversight. The company noted that all semaglutide imported into the US for compounding since June 2023 originated from Chinese suppliers.
With Novo Nordisk’s approved weight loss drugs Wegovy and diabetes treatment Ozempic now fully available nationwide, the company appears to be aggressively protecting its intellectual property and market position against competitors offering alternative GLP-1 medications.
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