Novo Nordisk Just Handed Its Courtroom Rival the Keys to Ozempic

Last month, Novo NordiskNVO

sued Hims & HersHIMS

for selling “egregious” knockoffs. This month, they’re splitting the profits. The two companies announced a surprise partnership to sell Wegovy and Ozempic through Hims’ online pharmacy platform — closing a lawsuit and sending both stocks higher Monday.

• Under the deal, Hims gains access to sell the blockbuster weight loss drugs at $149 to $499/month — in exchange for dropping advertising for its copycat GLP-1s.
• Markets see Hims as the clear winner, surging 41.8% and avoiding a costly legal battle — while Novo’s modest 3.1% gain suggests the deal is damage control.

Not so fast: This isn’t Novo and Hims’ first rodeo. A nearly identical deal collapsed last June, and Novo quietly reserved the right to refile its lawsuit this time around. For Hims, analysts say this deal means diluting its higher-margin drugs, resulting in thinner profits, even as revenues grow. Meanwhile, Eli Lilly’sLLY

Zepbound has outperformed Novo’s Wegovy in clinical trials, and this deal reads as much like a distribution lifeline as a peace offering. For now, it’s all smiles, but Novo kept the receipt.