Hims & Hers Stock Tanks After Novo Nordisk Deal Ends

Hims & Hers Health (ticker: HIMS), a rising telehealth and wellness company, saw its stock plunge roughly 30–35% on Monday. The drop followed Novo Nordisk abruptly canceling their partnership, accusing Hims of promoting and selling unauthorized compounded versions of Wegovy—semaglutide’s weight-loss version—putting patients at risk.

• April deal: The two companies joined forces to offer branded Wegovy for $599/month bundled with a Hims membership. This collaboration sent HIMS shares soaring, landing them near the top of the IBD 50 growth stock list.
• Compounding controversy: Despite Novo’s support, Hims continued to dispense compounded semaglutide—legally allowed during drug shortages—as cheaper alternatives.
• FDA ruling: The agency declared semaglutide fully supplied, ending emergency allowances for compounding. Yet, Hims persisted, which Novo criticized as "deceptive marketing" and a violation of the law.

Novo accused Hims of operating with substandard, foreign-sourced ingredients—especially from Chinese suppliers—and warned of safety violations. The company emphasized that mass-market compounding under a "personalization" label was unlawful and risky.

Novo’s Executive VP Dave Moore stated that, once shortages were resolved, any remaining compounded drugs undermined patient safety and brand integrity. Consequently, Wegovy will no longer be available via Hims’ platform.

Hims shares dropped around 30% in a single day—their steepest decline since going public. Novo shares dipped roughly 6%, reflecting broader investor unease—whether due to backlash or related news on its pipeline underperformance. Analyst outlook: Morgan Stanley warned that compounded semaglutide might make up nearly 50% of Hims’ projected $725 million in 2025 weight-loss revenue—loss of that income stream could dramatically affect its business.

Hims CEO Andrew Dudum countered Novo’s claims, saying:

They tried to “strong-arm” the company into pushing only branded Wegovy, cutting off provider autonomy and patient choice.

Dudum insisted Hims prioritizes patient access to a range of GLP-1 drugs and will continue offering multiple weight-loss treatments while navigating the fallout.

• Telehealth tension: The deal’s collapse spotlights conflicts between telehealth platforms and pharmaceutical companies over access, pricing, and drug regulation.
• Compounding law scrutiny: FDA lifted allowances making compounded semaglutide illegal—yet enforcement remains inconsistent. Regulators may soon take action.
• Growth at risk: With weight-loss treatments now central to Hims’ identity—and a big contributor to growth—this split could crash its momentum and stock valuation.

Hims & Hers' meteoric rise in the weight-loss healthcare space now hangs in the balance. The cancellation of its Wegovy deal rattles investor confidence and revenue outlook. How Hims adapts—through new partnerships, product expansion, or regulatory navigation—will determine whether this is a temporary stumble or a longer-term derailment.