TLDR
- Hims & Hers (HIMS) stock dropped 35% after Novo Nordisk ended their Wegovy direct sales partnership on Monday
- Novo Nordisk accused Hims & Hers of illegally selling copycat semaglutide drugs alongside branded Wegovy
- Hims & Hers CEO claimed Novo pressured the company to steer patients toward Wegovy regardless of best treatment options
- The partnership lasted less than two months after being announced in April 2025
- Hims & Hers faces broader challenges including slowing revenue growth and upcoming FTC subscription cancellation rules
Hims & Hers stock crashed Monday after Novo Nordisk abruptly terminated their short-lived partnership. The telehealth company’s shares plummeted nearly 35% in what marked the largest single-day decline on record.
Novo Nordisk announced it was ending the collaboration that made Wegovy available on Hims’ platform. The Danish drugmaker accused Hims & Hers of breaking federal law by continuing to sell copycat semaglutide alongside branded drugs.
🚨 NOVO NORDISK TERMINATES $HIMS PARTNERSHIP OVER "ILLEGAL" COMPOUNDING
– Novo says $HIMS deceptively promoted and sold unapproved knockoffs of Wegovy, endangering patient safety.
– The partnership lasted just over a month, and is now over pic.twitter.com/YZksY6Colw— Hims House (@himshouse) June 23, 2025
The partnership had only lasted about two months since its April announcement. Under the deal, Hims & Hers could dispense all doses of Wegovy to subscribers through Novo’s NovoCare Pharmacy.
Novo Nordisk shares also took a hit, falling around 5.5% on the news. The company said Hims & Hers failed to follow laws prohibiting mass sales of compounded drugs under false personalization claims.
“When patients are prescribed semaglutide treatments, they are entitled to receive authentic, FDA-approved and regulated Wegovy,” said Dave Moore, Novo’s executive vice president of U.S. operations. The company expressed concerns about patient safety risks from knockoff versions.
Hims & Hers CEO Andrew Dudum fired back on social media. He claimed Novo’s commercial team pressured the company to steer patients toward Wegovy regardless of whether it was the best treatment option.
“We refuse to be strong-armed by any pharmaceutical company’s anticompetitive demands that infringe on the independent decision making of providers and limit patient choice,” Dudum posted on X.
The Compounding Controversy
The dispute highlights ongoing tensions in the weight-loss drug market. Telehealth companies previously sold lower-cost knockoff versions made by compounding pharmacies when branded drugs were in short supply.
Compounding pharmacies were allowed to mass produce these versions while Lilly and Novo struggled with unprecedented demand. The FDA permits copycat drugs during shortages without requiring the same trials as branded versions.
Both companies have since resolved their supply issues. But compounding pharmacies continue making knockoffs through a legal loophole allowing “personalized” medicine for patients needing dosage adjustments or allergy accommodations.
Novo said it’s taking measures to protect patients from knockoff drugs made with “foreign illicit active pharmaceutical ingredients.” The company will continue making Wegovy available through select telehealth organizations via NovoCare Pharmacy.
Broader Challenges Mount
The Novo partnership collapse adds to mounting pressures facing Hims & Hers. Bank of America analyst Allen Lutz noted the company shows weakness beyond just GLP-1 related issues.
Revenue growth has slowed sharply from roughly 45% year-over-year in Q3 2024 to 29% in Q1 2025. Overall subscriptions to the telehealth platform are also showing weakness.
The Federal Trade Commission will implement new rules in July making it easier for customers to cancel subscriptions with one click. This could impact Hims by simplifying subscription cancellations and potentially increasing churn rates.
Congressional pressure to end direct-to-consumer pharmaceutical marketing could also hurt Hims. The company faced backlash after advertising compounded GLP-1s during February’s Super Bowl.
Lutz sees one potential bright spot in hormone replacement therapy. The $3 billion to $10 billion market could add $4 million to $12 million for Hims in 2025.
The analyst noted Hims’ strong history of scaling new categories quickly. The company’s direct-to-consumer offering could expand the addressable market given its brand recognition.
Dudum said Hims & Hers would continue offering access to various treatments, including Wegovy, despite the partnership’s end.
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