Relations among brand-name GLP-1 manufacturers and compounding pharmacies are deteriorating as weight loss pills enter the U.S. market and competition intensifies.
Hims & Hers, a telehealth company that sells medications for erectile dysfunction, hair loss, birth control and weight loss, said Feb. 5 it is now offering compounded versions of Novo Nordisk’s Wegovy pill. The same day, Denmark-based Novo Nordisk — which earned $21.9 billion from its GLP-1 drugs in 2025 — said it “will take legal and regulatory action” against Hims & Hers.
Hims & Hers is selling the compounded pill for a $99 monthly price; while Novo Nordisk is offering the Wegovy pill to self-paying patients for $299 per month’s supply.
In April 2025, the two companies partnered to make GLP-1s “more accessible” and “more affordable.” The partnership, which they characterized as a “long-term collaboration,” dissolved by May.
The latest dispute between Novo Nordisk and Hims & Hers is part of a broader conflict involving brand-name drugmakers, compounding pharmacies, telehealth companies, clinics and medical spas.
Globally, the GLP-1 market is projected to be worth $268.4 billion by 2030 — a significant jump from its $54.8 billion valuation in 2024, according to a Jan. 30 report from BCC Research. The Boston-based firm predicts the market will have a compound annual growth rate of 30.6% between 2025 and 2030.
Demand for GLP-1 drugs has remained high for years. The medications are FDA-approved to treat obesity, Type 2 diabetes and other conditions.
The world’s two leading GLP-1 brand-name manufacturers, Novo Nordisk and Eli Lilly, have been locked in a yearslong effort to block compounded versions from entering the market.
Since at least 2023, Novo Nordisk and Eli Lilly have filed several lawsuits against medical spas, clinics and compounding pharmacies they accuse of illegally marketing and selling compounded versions of injectable GLP-1s. In summer 2025, Eli Lilly said it would partner only with telehealth firms that stop selling compound versions of its weight loss drug, Zepbound.
Despite Novo Nordisk’s actions, “faux-zempic” spread widely across the U.S. In 2024, compounded versions accounted for up to 30% of the U.S. GLP-1 market.
Drug compounding is the mixing or altering of ingredients to meet a patient’s medication needs, often amid drug shortages. The FDA monitors and conducts for-cause inspections of compounding pharmacies, but the compounded drugs are not FDA-approved. The agency regulates larger 503B compounding pharmacies, while state boards of pharmacy oversee smaller 503A pharmacies.
Popular GLP-1 medications manufactured by Novo Nordisk — Ozempic and Wegovy — and Eli Lilly — Mounjaro and Zepbound — were in short supply for months, prompting telehealth companies, compounding pharmacies, clinics and medical spas to sell compounded versions. After the FDA declared the drug shortages as resolved and set a deadline for compounding pharmacies, many companies continued to sell compounded GLP-1 formulations.
In January, a U.S.-based compounding pharmacy sued Eli Lilly and Novo Nordisk, accusing the two pharmaceutical companies of using their market power to restrict access to compounded GLP-1s and suppress competition.
As branded GLP-1 pills such as Wegovy expand rapidly in the U.S., the dispute over who controls access, pricing and distribution of the drugs will likely intensify, particularly as manufacturers attempt to shut down compounded alternatives.
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