Why did Novo Nordisk end its deal with Hims & Hers?
On June 23, 2025, Danish drugmaker Novo Nordisk officially announced that it had terminated its agreement with Hims & Hers. This partnership was just a couple of months old, announced in April, and was originally built around expanding access to weight-loss treatments like Wegovy, Novo’s flagship semaglutide-based medication.
But the deal unraveled quickly. According to reports from Barron’s and CNBC, Novo Nordisk raised concerns that Hims was selling unapproved compounded versions of semaglutide, a practice that might violate U.S. drug safety regulations. Novo accused Hims of “deceptive promotion” and highlighted the potential risks of offering these formulations, some of which could have come from questionable suppliers.
The FDA had recently taken semaglutide off its drug shortage list in April 2025, meaning that compounded versions of the drug were no longer allowed to be sold under most circumstances. That put Hims’ weight-loss offerings in the spotlight—and clearly, Novo Nordisk didn’t want to be associated with what could be seen as legally gray activity.
How did this impact Hims stock and what numbers tell the story?
The effect on Hims stock was immediate and severe. The stock price plummeted over 20% in early Monday trading. According to real-time trading data:
- HIMS opened at $62.69
- It fell as low as $47.76
- The price hovered around $64.22 later in the day, but volatility remained high
- Volume surged to over 16.8 million shares, much higher than average
- Market Cap dropped to around $6.56 billion
At one point, the stock was down nearly 23%, erasing months of gains. This decline reflects not only the loss of a major partnership but also growing worries about regulatory compliance and reputational damage. By contrast, Novo Nordisk stock (NVO) dipped only slightly:
- NVO traded at $73.77, down about 0.32%
- Intraday low reached $68.05, but it recovered quickly
- Volume stood at just over 1.6 million shares
So while Novo suffered a short-term dip, it’s clear that Hims bore the brunt of the market reaction.
Why did Novo Nordisk cut ties with Hims & Hers over Wegovy?
Novo Nordisk said it made the decision after investigating Hims & Hers’ practices related to compounded versions of Wegovy. While compounded medications are sometimes allowed during FDA-declared shortages or for specific medical needs, the company claims Hims & Hers crossed legal lines by promoting and selling these alternatives on a mass scale—even after Wegovy’s supply stabilized in the U.S.
In its official statement, Novo Nordisk said Hims & Hers had “failed to adhere to the law which prohibits mass sales of compounded drugs” and accused the platform of “deceptive” marketing that could endanger patient safety.
The company clarified that it still supports the use of telehealth to increase access to Wegovy but will only work with providers who “share our commitment to safe and effective medical treatment for patients living with chronic diseases.”
What are compounded drugs and why are they controversial?
Compounded drugs are custom-made medications prepared by pharmacists when a patient can’t take a commercially available drug—for example, due to allergies or difficulty swallowing pills. However, these medications are not FDA-approved and can only be produced legally under strict circumstances.
During shortages, like the one Wegovy faced last year, compounding became more common. But since Novo Nordisk has resolved the shortage in the U.S., the FDA rules now prohibit widespread compounding of the drug.
Critics, including Novo Nordisk, argue that compounded versions can be risky because they may come from suppliers that don’t meet FDA quality standards. The company cited an April report by the Brookings Institution which found many active ingredients used in knock-off Wegovy versions were sourced from Chinese manufacturers, most of which were never inspected by the FDA—or failed inspections due to quality violations.
How did Hims & Hers respond to the Wegovy sales controversy?
As of Monday morning, Hims & Hers had not issued a public response to the termination of the partnership. During a May earnings call, CEO Andrew Dudum defended the company’s model by saying it gives both providers and patients autonomy in treatment decisions.
“Ultimately what is right for them is their own discretion,” Dudum said. “We strongly believe it’s really important that we maintain that independence.”
Hims & Hers has marketed itself as a convenient, affordable alternative for those seeking wellness and prescription treatments online. But this controversy could call into question the regulatory oversight of such platforms, especially in the booming weight loss sector.
What does this mean for consumers looking for Wegovy online?
Patients interested in Wegovy should be cautious when purchasing medications online. Novo Nordisk’s move to cut ties with Hims & Hers serves as a warning about the dangers of using unapproved, compounded weight loss drugs that may come from unverified international suppliers.
The safest route, experts say, is to get FDA-approved Wegovy through verified telehealth providers or in-person doctors who comply with legal and medical standards.
Novo Nordisk emphasized it will continue working with telehealth organizations that follow the law and prioritize patient safety.
How is this affecting the telehealth and weight loss drug market?
Shares of Hims & Hers dropped about 20% in early Monday trading, signaling investor concern over regulatory scrutiny and the company’s future access to high-demand drugs like Wegovy. The split also raises broader questions about how telehealth companies operate in the fast-expanding weight loss drug space, which includes blockbuster drugs like Ozempic and Zepbound.
The rivalry between branded pharmaceuticals and compounded alternatives has only intensified as more Americans seek prescription treatments for weight loss. With Novo Nordisk’s decision, telehealth companies may now face increased pressure to ensure legal compliance and transparency in how they promote and distribute medications.
FAQs:
Q1: Why did Novo Nordisk end its deal with Hims & Hers over Wegovy?
Novo Nordisk ended it due to illegal sales of unapproved compounded versions of Wegovy.
Q2: Is it safe to buy Wegovy from telehealth platforms?
Only FDA-approved Wegovy from trusted providers is considered safe.
