Hims & Hers Health (HIMS) stock dropped over 30% after Novo Nordisk abruptly terminated its partnership to provide the weight-loss drug Wegovy via the telehealth company's platform124.
Novo Nordisk ended the deal citing concerns that Hims & Hers was selling and promoting compounded (knockoff) versions of GLP-1 medications, including versions of semaglutide, the active ingredient in Wegovy, which Novo Nordisk claimed was both illegal and dangerous to patient safety124.
Novo Nordisk accused Hims & Hers of failing to follow laws that prohibit mass sales of compounded drugs and of using deceptive marketing; as a result, branded Wegovy will no longer be available through Hims & Hers' online pharmacy124.
The termination came less than two months after the partnership was announced, following FDA resolution of a previous Wegovy shortage124.
The news prompted an investor rights law firm to launch an inquiry into possible securities law violations related to Hims & Hers' business practices and public statements3.
Sources:
1. https://www.fiercehealthcare.com/health-tech/hims-hers-stock-plunges-30-novo-nordisk-terminates-wegovy-direct-sales-deal
2. https://www.investopedia.com/hims-and-hers-stock-plunges-30-percent-as-novo-nordisk-ends-partnership-citing-illegal-practices-11759136
3. https://www.globenewswire.com/news-release/2025/06/23/3103882/0/en/Hims-Hers-Health-Inc-HIMS-Shares-Crash-After-Novo-Nordisk-Cancels-Partnership-Over-Deceptive-Marketing-of-Wegovy-Faces-Investor-Scrutiny-Hagens-Berman.html
4. https://www.cbsnews.com/news/novo-nordisk-hims-hers-wegovy-weight-loss-drugs/