Novo Nordisk (NYSE:NVO) on Tuesday sued five medical spas and wellness clinics for allegedly selling cheaper, unauthorized versions of the company’s weight loss drugs Ozempic and Wegovy.
The Danish drugmaker initiated the lawsuits in federal courts in New York, Texas, Florida and Tennessee, according to media reports.
The suits accused the spas and clinics of marketing and selling “compounded” drug products that claim to contain semaglutide, the active ingredient in both Ozempic and Wegovy. Compounded drugs are custom-made versions of a treatment that are not approved by the Food and Drug Administration.
Novo Nordisk is the sole patent holder of semaglutide and does not sell that ingredient to outside entities. It’s unclear what the spas and clinics are actually selling to consumers.
Novo Nordisk asked the courts for orders blocking the sales of the unauthorized drugs and an unspecified amount of money damages.
“These unlawful marketing and sales practices, including the use of Novo Nordisk trademarks in connection with these practices, have created a high risk of consumer confusion and deception as well as potential safety concerns,” the company wrote in a press release Tuesday.
The spas and clinics named in the lawsuits include Pro Health Investments, Champion Health & Wellness Clinics and Flawless Image Medical Aesthetics.
NVO shares decreased in price 63 cents to $161.04.
