Novo Nordisk should be thinking about 'what's next,' says Dr. Kavita Patel
NBC News and MSNBC medical contributor Dr. Kavita Patel joins 'Fast Money' to discuss Novo Nordisk after the company ousted its CEO on Friday, the competition among obesity drug makers, and more.
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an hour ago
- Yahoo
The cheap fat jabs sending big pharma into a frenzy
For many Americans who tuned in to watch the Super Bowl earlier this year, it was a surprise to find themselves fat-shamed during the ad break. 'Obesity is America's deadliest epidemic,' a voiceover said, as images of wobbling bellies, greasy burgers and giant apple pies flashed across TV screens. The Super Bowl's 127m-strong audience, who were tucking into an estimated 1.5bn chicken wings during the event, were warned that 'obesity leads to half a million deaths each year'. But Hims and Hers, the US online medicines company behind the ad, said people should not blame themselves. Instead, its advert claimed that 'the system' was keeping them 'sick and stuck', adding that 'there are medications that work, but they're priced for profits, not patients'. To the relief of viewers, Hims and Hers offered a 'life-changing' solution. Rather than paying hundreds of dollars each month for well-known, branded weight-loss jabs such as Wegovy, households could instead try Hims and Hers' cheaper, replica versions. 'This is the future of healthcare,' it argued. 'Join us in the fight for a healthier America.' However, for the likes of Danish obesity drug maker Novo Nordisk and US pharma rival Eli Lilly, which have claimed the rise of copycat jabs poses potential health risks, such claims have become a serious headache. Over the past few decades, both businesses have poured billions of dollars into obesity drug research – recently yielding blockbuster drugs Wegovy and Mounjaro. The rapid uptake of such drugs has prompted a surge in revenues for big pharma. But bosses are now increasingly worried that demand among American patients has been dented by a cluster of smaller, copycat companies. According to industry estimates from November, around a quarter of the 8m Americans on weight-loss drugs were taking knock-off replica versions. These medicines, known as 'compound' drugs, were priced at around $200 ($148) a month, compared to over $1,300 for some branded versions. Barclays analyst Emily Field says the boom in copycat weight-loss drugs has been a 'unique phenomenon' in the US, sparking an inevitable surge in legal claims that has drawn the attention of regulators. So-called compound drugs are essentially custom-made medicines created by pharmacies using the same active ingredients of patented drugs. Historically, compounding pharmacies create custom versions of medicines if they need to personalise them for patients. For example, if someone is unable to take a standard oral medicine in pill form, or is allergic to an ingredient in an existing medicine. Compounding pharmacies are also typically blocked from mass-producing their drugs. For weight-loss drugs, though, it has been a different story. After the US Food and Drug Administration (FDA) put semaglutide – marketed as the blockbuster obesity drug Wegovy – and tirzepatide – the same for Eli Lilly's Mounjaro – on the shortage list in 2022, compounders were allowed to ramp up production. 'It was almost like these companies found a loophole where they were allowed to do this on a mass scale,' says Field. The impact has been significant. At the start of this year, Novo Nordisk estimated that the copycat drugs accounted for around a third of the entire weight-loss market. That is despite warnings from the FDA about the health risks posed by compounded medicines, which do not have to be approved by the regulator. Beth, from Washington, says she was tempted by online ads for the compound medicines, having struggled with her weight since the pandemic. For her, the drugs helped her at a time when it seemed impossible to lose weight or stick to a diet. She dropped 30lbs over a few months of taking a compound weight-loss medicine. Others say they had little choice but to opt for compound versions, given that the branded medicines were too expensive and not covered by their health insurance. However, the situation is rapidly changing. Last month, the FDA banned mass production of copycat weight-loss treatments that use semaglutide, the ingredient in Novo Nordisk's Wegovy. It also removed tirzepatide from its shortage list last October. Novo Nordisk said the law has now made things clearer. 'Moving forward, any compounder that mass produces or sells knock-off drugs is breaking the law and compromising patient safety,' a spokesman said. Eli Lilly says the products 'pose potentially life-threatening health risks', adding: 'Patients shouldn't be exposed to risky, unapproved products when regulator-approved medicines are available.' Online medicines firms, also known as telehealth businesses, are now racing to find a way to continue getting cheaper, personalised replica drugs out to patients. Noom, a rival to Hims and Hers, has suggested it will still be able to sell compounded weight-loss drugs to patients under an exception set aside for 'personalised' medicines. Hims and Hers, meanwhile, has already struck a new deal with Novo to offer its branded obesity drug to patients. The US firm also said this month it was exploring expansion in the UK, after acquiring European rival Zava. Andrew Dudum, the Hims and Hers chief, suggested there could be 'expansive options in obesity that include that type of personalisation, or similar types', telling the Financial Times that it could sell replica obesity medicines in the UK and Europe. David Meinertz, the boss of Zava, agrees that there are opportunities for the business to grow outside of America. 'There's clearly the experience and expertise that Hims and Hers have built up in the US,' he says. 'But then we have things like the regulatory knowledge here in Zava, and this is where we combine our experiences and spearhead this effort.' Still, the situation in the UK is very different to the US. Here, the compounding pharmacy market is much smaller, with pharmacies able to prepare personalised medicines for patients if it is prescribed by a doctor. Elizabeth Philp, the co-founder of compounding pharmacy Roseway Labs, says there could be a role for more personalisation of medicines. 'The NHS will say wasted medication is one of their top issues – people who try medication, put it in their bathroom cupboard and never use it again because it didn't suit them,' she says. 'We can really help with that.' However, drug insiders argue it would be a 'very bad idea' if the UK started to think about bringing in cheaper compound medicines for weight loss. 'The real drugs are getting very cheap at volumes,' says one senior drug leader. 'Supply is not an issue.' It will be a message that Novo and Eli Lilly will seek to drum home as they seek to prevent smaller rivals from selling cheaper weight-loss medicines to patients. Still, the effects of this debate are already being felt by many in the US battling to lose weight. 'I cannot afford the full price at this time,' says Beth. 'I think it's awful that people are losing access to this medication due to finances or compounded meds going away. 'These drugs are literally life-changing.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
3 hours ago
- Yahoo
The cheap fat jabs sending big pharma into a frenzy
For many Americans who tuned in to watch the Super Bowl earlier this year, it was a surprise to find themselves fat-shamed during the ad break. 'Obesity is America's deadliest epidemic,' a voiceover said, as images of wobbling bellies, greasy burgers and giant apple pies flashed across TV screens. The Super Bowl's 127m-strong audience, who were tucking into an estimated 1.5bn chicken wings during the event, were warned that 'obesity leads to half a million deaths each year'. But Hims and Hers, the US online medicines company behind the ad, said people should not blame themselves. Instead, its advert claimed that 'the system' was keeping them 'sick and stuck', adding that 'there are medications that work, but they're priced for profits, not patients'. To the relief of viewers, Hims and Hers offered a 'life-changing' solution. Rather than paying hundreds of dollars each month for well-known, branded weight-loss jabs such as Wegovy, households could instead try Hims and Hers' cheaper, replica versions. 'This is the future of healthcare,' it argued. 'Join us in the fight for a healthier America.' However, for the likes of Danish obesity drug maker Novo Nordisk and US pharma rival Eli Lilly, which have claimed the rise of copycat jabs poses potential health risks, such claims have become a serious headache. Over the past few decades, both businesses have poured billions of dollars into obesity drug research – recently yielding blockbuster drugs Wegovy and Mounjaro. The rapid uptake of such drugs has prompted a surge in revenues for big pharma. But bosses are now increasingly worried that demand among American patients has been dented by a cluster of smaller, copycat companies. According to industry estimates from November, around a quarter of the 8m Americans on weight-loss drugs were taking knock-off replica versions. These medicines, known as 'compound' drugs, were priced at around $200 ($148) a month, compared to over $1,300 for some branded versions. Barclays analyst Emily Field says the boom in copycat weight-loss drugs has been a 'unique phenomenon' in the US, sparking an inevitable surge in legal claims that has drawn the attention of regulators. So-called compound drugs are essentially custom-made medicines created by pharmacies using the same active ingredients of patented drugs. Historically, compounding pharmacies create custom versions of medicines if they need to personalise them for patients. For example, if someone is unable to take a standard oral medicine in pill form, or is allergic to an ingredient in an existing medicine. Compounding pharmacies are also typically blocked from mass-producing their drugs. For weight-loss drugs, though, it has been a different story. After the US Food and Drug Administration (FDA) put semaglutide – marketed as the blockbuster obesity drug Wegovy – and tirzepatide – the same for Eli Lilly's Mounjaro – on the shortage list in 2022, compounders were allowed to ramp up production. 'It was almost like these companies found a loophole where they were allowed to do this on a mass scale,' says Field. The impact has been significant. At the start of this year, Novo Nordisk estimated that the copycat drugs accounted for around a third of the entire weight-loss market. That is despite warnings from the FDA about the health risks posed by compounded medicines, which do not have to be approved by the regulator. Beth, from Washington, says she was tempted by online ads for the compound medicines, having struggled with her weight since the pandemic. For her, the drugs helped her at a time when it seemed impossible to lose weight or stick to a diet. She dropped 30lbs over a few months of taking a compound weight-loss medicine. Others say they had little choice but to opt for compound versions, given that the branded medicines were too expensive and not covered by their health insurance. However, the situation is rapidly changing. Last month, the FDA banned mass production of copycat weight-loss treatments that use semaglutide, the ingredient in Novo Nordisk's Wegovy. It also removed tirzepatide from its shortage list last October. Novo Nordisk said the law has now made things clearer. 'Moving forward, any compounder that mass produces or sells knock-off drugs is breaking the law and compromising patient safety,' a spokesman said. Eli Lilly says the products 'pose potentially life-threatening health risks', adding: 'Patients shouldn't be exposed to risky, unapproved products when regulator-approved medicines are available.' Online medicines firms, also known as telehealth businesses, are now racing to find a way to continue getting cheaper, personalised replica drugs out to patients. Noom, a rival to Hims and Hers, has suggested it will still be able to sell compounded weight-loss drugs to patients under an exception set aside for 'personalised' medicines. Hims and Hers, meanwhile, has already struck a new deal with Novo to offer its branded obesity drug to patients. The US firm also said this month it was exploring expansion in the UK, after acquiring European rival Zava. Andrew Dudum, the Hims and Hers chief, suggested there could be 'expansive options in obesity that include that type of personalisation, or similar types', telling the Financial Times that it could sell replica obesity medicines in the UK and Europe. David Meinertz, the boss of Zava, agrees that there are opportunities for the business to grow outside of America. 'There's clearly the experience and expertise that Hims and Hers have built up in the US,' he says. 'But then we have things like the regulatory knowledge here in Zava, and this is where we combine our experiences and spearhead this effort.' Still, the situation in the UK is very different to the US. Here, the compounding pharmacy market is much smaller, with pharmacies able to prepare personalised medicines for patients if it is prescribed by a doctor. Elizabeth Philp, the co-founder of compounding pharmacy Roseway Labs, says there could be a role for more personalisation of medicines. 'The NHS will say wasted medication is one of their top issues – people who try medication, put it in their bathroom cupboard and never use it again because it didn't suit them,' she says. 'We can really help with that.' However, drug insiders argue it would be a 'very bad idea' if the UK started to think about bringing in cheaper compound medicines for weight loss. 'The real drugs are getting very cheap at volumes,' says one senior drug leader. 'Supply is not an issue.' It will be a message that Novo and Eli Lilly will seek to drum home as they seek to prevent smaller rivals from selling cheaper weight-loss medicines to patients. Still, the effects of this debate are already being felt by many in the US battling to lose weight. 'I cannot afford the full price at this time,' says Beth. 'I think it's awful that people are losing access to this medication due to finances or compounded meds going away. 'These drugs are literally life-changing.'
Yahoo
14 hours ago
- Yahoo
Eli Lilly telehealth deals to prevent sale of compounded GLP-1s
Eli Lilly (LLY) revealed a new stipulation regarding its business dealings with telehealth companies Ro and LifeMD (LFMD), ensuring that compounded versions of its GLP-1 weight-loss drugs are not being sold on these sites. Yahoo Finance senior health reporter Anjalee Khemlani sheds more light on this and compares other GLP-1 manufacturers' telehealth deals. Also watch Anjalee Khemlani's coverage of US Health Secretary Robert F. Kennedy, Jr.'s decision to remove all 17 members of the Centers for Disease Control and Prevention's (CDC) vaccine advisory panel. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Eli Lilly revealing a caveat to its agreement with telehealth firms including its recent deals with Ro and LifeMD. Yahoo! Finance's Anjalee Khemlani joining us now with more. So tell us more about this caveat, Anj. Bloomberg reported some details about Eli Lilly's agreements with these telehealth companies, and that includes, as you mentioned, some of the ones that are not the big names we know. So not Hims & Hers, and that is sort of the point of this mention, that Lilly has created a route to be able to get their product in with these companies, while also ensuring that the compounded versions are not being sold on the same site and they're not competing with those compounded versions. Important to note though, and we got a statement from Eli Lilly that they are actually helping their competitor Novo Nordisk out, because in the comment I got, it said quote, 'Anyone continuing to sell mass compounded tirzepatide or semaglutide products including by referring to them as personalized, tailored or something similar is breaking the law.' That's a direct quote from Eli Lilly, and the call out on personalized and tailored is because that is a loophole that certain compounded pharmacies are currently trying to use to keep these compounded GLP-1s on the market, saying that they don't entirely have to shut down despite the FDA bringing those products off the shortage list and therefore stopping compounded products. Now, this is interesting because we have seen a number of telehealth companies, not just partner with Eli Lilly, but also Novo Nordisk and their telehealth platform. And Hims & Hers is currently partnered with Novo Nordisk. So it seems that that caveat was not part of the agreement there. So two different sort of competing strategies to try and compete with compounded products and get them off the market, or not at all in the case of Novo Nordisk. But this is the reason why that Lilly caveat is so interesting. There are some companies that are part of the platform that do continue to sell compounded products, and it remains to be seen how Lilly does manage those and how they go after them. Anj, I'm just going to put a fine point on it, Hims & Hers, I'm looking at the shares are down about 3%, and it looks like it is indeed linked to this. Of course, Hims & Hers is also up, like, 128% this year. That's right, yes, they definitely have been benefiting from the GLP-1 boost, and one of the biggest ones that we can track as a publicly traded company. And that's sort of the benefit that they've had is that no matter what has been happening in GLP plus telehealth world, they have been the benefactors of that in their stock price. And now to this point when the sort of mask is taken off on, on some of these agreements, it comes down to whether or not Hims decides to join the, the entire rest of the community and the other telehealth players in taking down these compounded products or whether or not they continue to sell them. I did speak to previously one of the telehealth companies, and they said that they had given their members a chance to buy sort of a year's worth of supply of compounded products by the deadline, and some clients did take advantage of that. So there clearly is still a market for these products based on their price, and who's trying to, you know, access them, but it seems like the companies are working with the authorities to try and do a better job of policing that and see, and making sure that the branded products are the ones now on the market. Anj, thanks, as always, for your coverage of the GLP-1 space, appreciate it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
