Novo-Nordisk A/S (NVO) shares surged 6.44% in overnight trading, marking a significant 24-hour gain for the pharmaceutical giant.
The stock's jump came after the U.S. Food and Drug Administration indicated it would take action against rival Hims & Hers, which had planned to launch a $49 compounded version of Novo Nordisk's popular Wegovy weight-loss pill. Hims & Hers subsequently reversed course on the product launch, removing a potential competitive threat to Novo's flagship medication.
This regulatory development strengthens Novo Nordisk's position in the lucrative weight-loss drug market, where Wegovy has been a major commercial success. The FDA's intervention against compounded versions of the medication protects Novo's market exclusivity and revenue potential.