Novo Nordisk has officially terminated its partnership with Hims & Hers over “illegal mass compounding” and “deceptive marketing practices” allegations. Moreover, the Danish drugmaker stressed that it factored in patient safety in its decision. The deal only lasted for two months.
Previously, Hims & Hers expanded access to the blockbuster weight loss drug Wegovy by selling it through its digital platform. The objective was to shift from compounded versions to the FDA-approved brand, following the end of a shortage crisis.
However, Novo Nordisk has accused Hims of continuing to distribute compounded variations of semaglutide despite Wegovy already being in supply.
FDA Ruling Plays Critical Role
In March, the U.S. Food and Drug Administration (FDA) removed Wegovy from its official drug shortage list in March. As a result, pharmacies lost the legal ability to compound semaglutide.
Despite this move, Hims allegedly kept selling semaglutide sourced from unregistered facilities. Novo claims the FDA overlooked and were unable to track the origins of these active ingredients.
Because of this, the company acted swiftly to protect its reputation and patients. Moreover, a federal judge recently upheld the FDA’s ban on compounding semaglutide copies.
Consequently, this ruling strengthened Novo’s position and clarified the legal landscape. It also warned other telehealth firms operating in the same space.
Hims & Hers Drops 30%
Following the announcement, Hims & Hers stock nosedived over 30% in Monday trading. Investors reacted sharply to the news. They may face mounting pressure from shareholders and public scrutiny in the coming months.
Meanwhile, Novo Nordisk shares slipped nearly 6%, although less dramatically. Hence, analysts pointed to concerns about broader GLP-1 market stability.
As a consequence, legal firms have launched investigations into potential securities violations, as the sudden contract termination surprised the market.
Novo Nordisk & Hims’ War on Words
Dave Moore, executive vice president at Novo Nordisk, said the company will continue to collaborate with “compliant” telehealth platforms.
In addition, he stressed that Novo remains committed to delivering Wegovy safely and legally. Moreover, he warned that patient trust is central to long-term success.
Meanwhile, Hims & Hers CEO Andrew Dudum released a statement on X. He claims that Novo Nordisk “increasingly pressured” Hims to “control clinical standards.” Furthermore, that Novo Nordisk wanted them to “steer patients to Wegovy regardless of whether it was clinically best for patients.”
Industry-Wide Implications
This abrupt deal-ender has implications beyond Hims. Overall, it reflects rising tensions between traditional pharmaceutical firms and fast-moving digital health startups.
Furthermore, it sends a warning to telehealth companies that rely on compounded GLP-1 medications. In response, regulatory enforcement appears to be ramping up.
As Wegovy supply normalizes, major drugmakers are more likely to enforce brand control. Consequently, unauthorized compounding may face increasing legal risk.
Outlook for Hims & Novo Nordisk
Novo Nordisk plans to continue offering Wegovy through vetted telehealth providers that follow FDA and marketing rules. At the moment, Wegovy remains available on Ro and LifeMD.
Meanwhile, Hims must reassess its obesity strategy amid public scrutiny and legal risk.
Ultimately, this incident may reshape the telehealth landscape. Trust, transparency, and compliance are more vital than ever.
© News Øresund – Johan Wessman – www.flickr.com/photos/newsoresund/29190030262 – CC BY 3.0, CC BY 3.0, via Wikimedia Commons
