The telehealth platform Hims and Hers Health shook up the obesity-treatment market on Thursday by launching what it says is the cheapest GLP-1 pill in the United States. Priced at $49 for the first month, then $99 a month via subscription, the compounded version of Novo Nordisk's Wegovy pill is being sold well below the $199 price announced by the Danish drugmaker. Markets reacted immediately: Novo Nordisk shares and Eli Lilly shares fell 8%, in reaction to rising competitive pressure in an already strained sector.

Novo Nordisk strongly condemned the move, calling it illegal large-scale manufacturing and threatening legal action. The Hims start-up, which is relying on authorization to sell compounded versions of semaglutide during shortages, says it is offering a more flexible option tailored to growing demand for oral and personalized treatments. Chief executive Andrew Dudum says the strategy is aimed at broadening access to anti-obesity drugs by expanding the choices available on its platform.

The commercial push comes at a critical moment for Novo, which has already lowered its forecasts amid intensifying pricing pressure. Eli Lilly, meanwhile, is preparing to launch its own weight-loss pill in the coming months. The regulatory framework around compounded medicines remains unclear: while legal in certain cases, large-scale commercial use is raising concerns among authorities. The clash between Hims and Novo highlights intensifying competition in a fast-growing market that is now increasingly constrained by prices and regulation.