Shares of the Denmark-based global pharmaceutical giant Novo Nordisk (NASDAQ:NVO) rose over 7%, as the U.S. Food and Drug Administration (FDA) pledged to take action against the large-scale marketing of unapproved generic weight loss pills. This helped the stock recover some of the losses from the previous two trading days. Eli Lilly (NYSE:LLY) also bounced back, rising over 2% after a nearly 8% drop the day before.

Hims & Hers Health (NYSE:HIMS) fell more than 7%.

On Thursday, the U.S. telehealth company Hims & Hers Health launched a significantly cheaper $49 generic version of Wegovy, a weight loss drug approved by the FDA and produced by Novo Nordisk. This move triggered a decline in the stock prices of both Novo Nordisk and Eli Lilly, which have dominated the weight loss drug market.

FDA Commissioner Marty Makary posted on social media platform X, stating, “The FDA will swiftly act against companies that are massively marketing illegal generic weight loss drugs, claiming their products are similar to FDA-approved ones.” He did not name any specific companies but added, “The FDA cannot verify the quality, safety, or efficacy of unapproved drugs.”

Wegovy Pill, the world’s first oral macromolecule drug—oral semaglutide for weight loss—was launched in the U.S. at the beginning of this year. After being released on January 5, it quickly became a star product in the local obesity market, with prescriptions soaring from 3,071 in the first four days to over 18,000 by the week of January 16. By the week of January 23, prescriptions had further increased to 26,109, showing strong momentum since its launch.

Resistance to injections and greater trust in oral medications is a common psychological tendency among patients with chronic conditions such as obesity and diabetes. Adherence to treatment is a critical factor in achieving effective results.