How $HIMS Leveraged Ozempic’s Brand to Disrupt $NVO
When Ozempic went viral in the media because of celebrities such as Kim Kardashian allegedly using it for weight loss, the demand exploded.
While that drove sales and enabled $Novo-Nordisk A/S(NVO)$ to demand a high price, it also pushed the government to increase the supply, thus, the FDA declared a shortage.
When compounding began, the demand for Semaglutide was significantly greater than for $Eli Lilly(LLY)$ 's Tirzepatide, because the latter lacked brand familiarity.
Everyone knew Ozempic and wanted to get their hands on it.
Companies such as $Hims & Hers Health Inc.(HIMS)$ actively marketed that they were using the same ingredient as Ozempic.
Directly aiming to monetise the brand that Novo Nordisk had built.
Nobody was advertising a compounded Tirzepatide as “the same ingredient as in Mounjaro”, as the brand familiarity of it was nowhere on the same scale as Ozempic.
It also cheapened the Ozempic and Wegovy brands.
Why would someone pay full price if there are compounded products for less than half the price?
NVO lost billions because compounders such as HIMS destroyed their brand by selling essentially "the same product" for half the price.
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