Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats, a major move that sent shockwaves across the telehealth and pharmaceutical industries. On Monday, Novo Nordisk officially announced it was cutting ties with Hims & Hers Health Inc., citing serious concerns over the company’s alleged sale and promotion of unapproved, compounded versions of its blockbuster weight-loss drug, Wegovy. The decision had an immediate impact, with HIMS stock plunging by approximately 20% during premarket trading.
Wegovy Access Deal Terminated Amid Legal Concerns
The deal between Novo Nordisk and Hims & Hers was initiated in April to expand access to Wegovy via telehealth platforms. At the time, the drug was no longer considered in shortage by the FDA, allowing regulated telehealth companies to distribute the brand-name medication directly. However, Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats after alleging that the telehealth firm did not comply with federal law restricting the bulk sale of compounded medications. The drugmaker emphasized that compounding is only legal in rare cases of genuine medical necessity.
Allegations of Deceptive Marketing Raise Safety Fears
As Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats, it’s clear the company is cracking down on unauthorized drug distribution. Novo Nordisk accused Hims & Hers of using “deceptive” marketing tactics to sell compounded Wegovy under the “false guise” of personalization. The pharmaceutical giant emphasized that such practices not only breach legal boundaries but also endanger patient safety. These concerns are driving a broader industry conversation around the ethics and legality of compounded drug sales in the weight loss space.
Compounded Wegovy: Legal Loopholes and FDA Standards
The dispute escalated as Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats, citing compounded versions of semaglutide being produced outside FDA standards. During declared shortages, pharmacies may legally produce compounded versions of brand-name drugs. However, once the shortage ends, compounding in bulk is largely prohibited unless required for individual patients with medical needs. The FDA has warned that compounded drugs are not subject to the same safety, efficacy, and quality controls, making their widespread distribution a public health concern.
Hims & Hers Under Scrutiny for Compounded Prescriptions
The issue came to a head after Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats, with the company asserting that Hims & Hers failed to follow U.S. laws around personalized care. During a recent earnings call, Hims & Hers CEO Andrew Dudum defended the company’s approach, stating that treatment choices should remain between providers and patients. While this perspective emphasizes autonomy, Novo Nordisk maintains that such autonomy must exist within strict regulatory boundaries to ensure safe medical practices.
Investigation Reveals Foreign Ingredient Sources
Another key reason Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats is the discovery of foreign-sourced active ingredients. According to Novo Nordisk’s investigation, many of the compounded semaglutide products offered by telehealth companies use raw materials manufactured in China. The company referenced a Brookings Institution report from April, noting that many of these suppliers were either never inspected by the FDA or were found to have quality violations. This revelation further fueled concerns about the safety of compounded weight-loss medications being sold under U.S. brands.
HIMS Stock Takes a Hit After Partnership Collapse
The market reaction was swift and harsh after Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats. Shares of Hims & Hers plummeted around 20% in premarket trading, reflecting investor concern over the future of the company’s weight-loss drug offerings. The now-terminated partnership had previously been seen as a major growth opportunity. With Wegovy no longer accessible via Hims, the company may face significant challenges in maintaining momentum in the competitive telehealth sector.
Novo Nordisk to Continue Wegovy Sales Through Compliant Partners
Despite the fallout, Novo Nordisk has confirmed it will continue offering Wegovy through other telehealth organizations that align with its safety and legal standards. Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats, but it remains committed to expanding access to the branded drug through compliant platforms. This shift underscores the drugmaker’s focus on ensuring that weight-loss medications are distributed ethically and legally while protecting patient health across the U.S. healthcare system.
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