Investing.com -- Hims and Hers Health (NYSE: HIMS) stock surged 19% on Thursday after the telehealth company announced it will offer compounded versions of Novo Nordisk’s (NYSE: NVO) new Wegovy pill at an introductory price of $49 per month, significantly undercutting the brand-name product.

The news sent shares of Novo Nordisk tumbling 7%, while Eli Lilly (NYSE: LLY) fell 3.6%, as investors reacted to increased competition in the weight-loss drug market. Hims’ price point is about $100 less than Novo Nordisk’s branded version.

After the introductory offer, patients with a 5-month subscription will pay $99 monthly for Hims’ compounded semaglutide pills, compared to the $199 Novo Nordisk charges. Shorter subscription plans are also available, with a 3-month plan totaling $277.

"We’re excited to find ways to continue bringing branded treatments to the platform across specialties. More choice on the platform is the best thing for customers everywhere," said Hims CEO Andrew Dudum in a statement.

The announcement comes just one day after Novo Nordisk warned of unprecedented pricing pressure as customers shift to cash-pay markets and insurers demand deeper discounts. The Danish drugmaker is also facing competition from Eli Lilly.

Hims and Novo Nordisk previously had a partnership to sell injectable Wegovy, but the relationship ended with Novo claiming Hims wrongfully marketed copycat products.