Novo Nordisk Takes Legal Action Against Wellness Clinics for False Advertising of Weight Loss Drug

Novo Nordisk A/S NVO has filed lawsuits against several medical spas, weight-loss clinics, and wellness clinics, alleging they illegally marketed custom-made versions of Ozempic and other Novo Nordisk medicines for weight loss. 

Semaglutide is a peptide sold by Novo Nordisk under Ozempic, Rybelsus, and Wegovy for the long-term treatment of type 2 diabetes or obesity.

Novo Nordisk stated that there is currently no supply crunch for Ozempic. However, there may be slight delays in pharmacies receiving the product from distributors. 

The company is actively increasing the production of Wegovy to meet the rising demand. As part of this effort, they have temporarily reduced the supply of specific lower doses of Wegovy while focusing on ramping up production.

The company accused these establishments of false advertising, trademark infringement, and unfair competition in lawsuits filed across the U.S. 

Novo Nordisk sought court intervention to prevent the spas and clinics from claiming their drugs contained the main ingredient found in Ozempic and related drugs. 

Some of these businesses also offered the drugs at lower prices than Novo Nordisk's listed prices Wall Street Journal reported, which can reach up to $1,350 per month.

Novo Nordisk said last week it was investigating, in conjunction with the FDA, a counterfeit pen for injecting Ozempic containing a different diabetes medicine, which reportedly resulted in an adverse reaction, the report added.

Novo Nordisk's weight loss drug was in the news when the latest TikTok health trend, "Nature's own Ozempic," revolved around berberine, an herbal preparation that the social media influencers claim can aid in weight loss.

Price Action: NVO shares are up 0.78% at $162.55 on the last check Tuesday.