COPENHAGEN, Denmark: Novo Nordisk shares climbed sharply on February 9 after a key source of competitive pressure eased, when telehealth firm Hims & Hers pulled back from selling a low-cost compounded weight-loss pill following regulatory and legal warnings.

Frankfurt-listed shares in Novo Nordisk rose 4.5 percent after Hims & Hers said over the weekend it would reverse the launch of a US$49-a-month compounded pill based on semaglutide, the active ingredient in Novo's blockbuster obesity and diabetes drugs Wegovy and Ozempic.

Hims introduced the pill last week, triggering swift pushback from Novo Nordisk and U.S. regulators. On February 8, Hims said it would stop offering the treatment after holding "constructive conversations with stakeholders."

Novo's stock had already rebounded more than five percent on February 6 after U.S. Food and Drug Administration Commissioner Marty Makary signaled a crackdown on unauthorized compounded GLP-1 medications, which have been eating into the drugmaker's pricing power in the fast-growing weight-loss market.

The pullback offers some relief for Novo, which has repeatedly warned about the safety and regulatory risks of compounded GLP-1 drugs and has been lobbying regulators to tighten oversight.

Even so, the Danish drugmaker remains under heavy pressure. It faces intensifying competition from Eli Lilly and continued demand for cheaper alternatives. At its full-year earnings last week, Novo flagged "unprecedented price pressure," triggering a 17 percent plunge in its share price.

Novo Nordisk's market value peaked in June 2024 but has since fallen by nearly two-thirds, underscoring investor concerns about pricing, competition, and the durability of its dominance in obesity treatments.