Hims and Hers, an online pharmacy, has decided to withdraw its cheaper generic version of Novo Nordisk's weight loss drug, Wegovy. The company announced this move in a press release, stating that it was a result of productive discussions with stakeholders. Initially, they intended to provide the generic medication for $49, compared to the original price of $149 for Wegovy, but this plan faced criticism and regulatory scrutiny.

The launch of the cheaper alternative reportedly caused Novo Nordisk's stock to drop by eight percent on the news. In response to this market reaction and potential regulatory challenges from the U.S. Food and Drug Administration (FDA), Hims and Hers made the decision to discontinue the offering. The CEO of the FDA, Marty Makary, publicly indicated that the agency would take action against illegal copies of medication, which raised concerns about the legitimacy and safety of such products.

Following the announcement of the discontinuation, Novo Nordisk's stock experienced a rebound on Friday, reflecting investor reactions to the news and indicating a stabilized market response. The situation highlights the complex interplay between generic drug offerings, regulatory frameworks, and market dynamics in the pharmaceutical industry.