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Novo filed 14 new lawsuits against telehealth providers,
weight-loss clinics
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Hims defends personalized medicine as healthcare's future
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Legal experts say Novo's strategy may pressure Hims to
negotiate
By Maggie Fick and Diana Novak Jones
LONDON, Aug 11 (Reuters) - In Novo Nordisk's
legal fight against dozens of U.S. pharmacies and companies
selling cheaper copies of its weight-loss drug Wegovy, one name
remains conspicuously absent: Hims & Hers.
The high-profile telehealth company continues to sell
compounded versions of Wegovy at lower prices, testing the
limits of federal restrictions on such copies and contributing
to weaker sales growth for Novo.
In June, Novo accused Hims of violating its intellectual
property and endangering patients, scrapping a brief arrangement
enabling them to sell Wegovy directly to consumers and raising
expectations of litigation.
A Novo spokesperson said the Danish drugmaker was not ruling
out further legal action after announcing new lawsuits against
14 small pharmacies, telehealth providers and weight-loss
clinics this week, but declined to comment on Hims. The
drugmaker has filed more than 130 cases in 40 U.S. states.
A spokesperson for Hims defended personalization of
medicines as the future of healthcare, saying patients and
providers use their platform to make clinical decisions.
"Investors are happy to see Novo getting more aggressive on
the litigation front, but remain puzzled as to why they haven't
confirmed that they are filing or have filed litigation against
Hims yet," said Barclays analyst Emily Field.
Legal experts say Novo's expanding litigation against
smaller telehealth players could add pressure on a company like
Hims to negotiate a settlement or help the drugmaker test out
strategies.
At the same time, the fact that Novo and Hims had a prior
collaboration may complicate legal action.
"Business happens in the shadow of the law," said Robin
Feldman, a professor at UC Law San Francisco who has written
books on the pharmaceutical industry and its intellectual
property battles. "Sometimes companies file against smaller
players as a shot across the bow, a way to rattle the larger
players."
The U.S. Food and Drug Administration set a May 22 deadline
for compounding pharmacies to cease mass-producing copies of
Wegovy, a practice allowed only when a drug is in shortage.
Hims says it still offers personalized versions of Wegovy,
in doses not manufactured by Novo, that better suit individual
patient needs. The telehealth provider argues that
individualized dosing remains legal under compounding rules.
Compounding laws "are just vague enough to allow for
different interpretations, and the interpretation that matters -
that of the courts - has not been provided to our knowledge,"
said TD Cowen analyst Michael Nedelcovych.
Novo's cases against smaller compounders could shape how
courts interpret those boundaries, said Gaston Kroub, a partner
at patent litigation firm Kroub, Silbersher & Kolmykov.
"This is an untested set of affairs," said Kroub. "If you
want to train for a heavyweight championship fight, you start
sparring with lighter opponents."
In addition to trademark infringement, Novo has accused
pharmacies of steering people toward compounded Wegovy by
interfering with the relationship between clinicians and
patients.
Josh Gerben, an intellectual property attorney, said the
fact that Hims and Novo had a prior business relationship will
complicate any claim Novo could bring.