Why Novo Nordisk stock fell 7% after a telehealth startup’s announcement

Novo Nordisk’s stock dove 7% on Thursday just after an announcement from a key competitor.

The drop came just after telehealth company Hims & Hers announced it will offer a new version of the treatment, made from the same active ingredient, semaglutide, for a fraction of Novo Nordisk’s price. The telehealth site will offer the treatment at an introductory price of $49, the announcement said. After the introductory offer ends, patients with a five-month subscription will pay $99 monthly for the treatment.