Novo Nordisk A/S (NYSE:NVO) shares are trading lower on Thursday after the company was hit with a lawsuit from compounding pharmacy Strive Specialties.
- Novo Nordisk stock is feeling bearish pressure. What’s behind NVO decline?
The Legal Battle Over Weight-Loss Drug Monopoly
Strive Specialties filed a lawsuit on Wednesday in a federal district court in San Antonio, Texas, alleging that Novo Nordisk and Eli Lilly and Co (NYSE:LLY) illegally blocked access to customized versions of their blockbuster weight-loss medicines, reported Reuters.
Strive filed the suit, alleging Novo Nordisk and Eli Lilly illegally blocked access to customized, lower‑cost versions of their popular GLP‑1 weight‑loss drugs.
The pharmacy believes the two companies used their dominance in the market to keep patients from getting compounded alternatives to medications like Ozempic and Wegovy, and alleged they struck exclusive deals with major telehealth platforms that stopped doctors from prescribing compounded GLP‑1s even when a tailored dose was needed.
Strive also said the companies interfered with its relationships with payment processors and tech partners, arguing that compounders stepped in during shortages and still provide options brand‑name drugs don’t.
The pharmacy is seeking monetary damages and a court order preventing Novo and Lilly from enforcing the alleged exclusivity agreements.
Novo responded by saying, “the claims in this litigation are without merit, and we will vigorously defend against them in court.”
NVO Price Action: Novo Nordisk shares were down 3.40% at $56.91 at the time of publication on Thursday, according to Benzinga Pro.
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