Novo Nordisk Ends Ties Amid Compounding Concerns
The HIMS stock took a massive hit on Monday after Danish pharmaceutical giant Novo Nordisk announced it was cutting ties with telehealth provider Hims & Hers. The decision follows growing concerns over Hims & Hers’ sale and promotion of compounded, unapproved alternatives to the blockbuster weight loss drug Wegovy.
HIMS Stock performance on 23 June [Google Finance]
Novo Nordisk had partnered with several telehealth companies, including Hims & Hers, in April 2025 to expand access to Wegovy. The move came after the drug’s long-standing supply shortage in the U.S. ended. But the relationship quickly soured.
According to Novo Nordisk, Hims & Hers violated legal restrictions by continuing to promote mass sales of compounded versions of Wegovy, which are no longer permitted now that the drug is fully stocked. The drugmaker accused Hims & Hers of using the “false guise” of personalisation to justify large-scale distribution of the unapproved alternatives.
Novo Nordisk’s executive vice president of U.S. operations, Dave Moore, told CNBC, “We expected that the efforts towards compounding personalisation would diminish over time. When we didn’t see that, we had to make a choice on behalf of patients.”
He emphasised that “patient safety is our primary focus” and added, “Our expectation was that [Hims & Hers’] business focus would transfer toward real, safe, approved medications.”
Stock Price Collapses Following Announcement
The market responded swiftly. Hims & Hers shares tumbled by 30.13% to $44.87 (at the time of writing) on Monday, down $19.35 from its previous close of $64.24. The HIMS stock has now fallen well below its recent highs and is trading in the lower end of its yearly range, which spans from $13.47 to $72.98.
Novo Nordisk’s stock also slipped over 6% following the announcement, amid wider concerns about the regulation of telehealth services and compounded medications.
Legal Risks Mounting for Hims & Hers
Citi analyst Daniel Grosslight noted in a Monday research note that the termination of the partnership significantly increases Hims & Hers’ legal exposure. He admitted surprise that the initial partnership had failed to address the company’s compounding efforts.
Although pharmacists can legally produce compounded versions of brand-name medications during FDA-declared shortages or when medically necessary, Novo Nordisk argued that Hims & Hers continued compounding practices even after the shortage ended on May 22.
The FDA does not approve compounded drugs, and concerns around their safety have been widely reported. Moore said an investigation revealed that many active ingredients in Wegovy alternatives sold by Hims & Hers were sourced from unregulated Chinese suppliers, some of which had known quality assurance violations.
“These medicines that are coming into our country from sources around the world are not even approved in those countries that they originated, and it’s a problem,” Moore added.
The “Wegovy” weight-loss injection is available for purchase at the Achat pharmacy in Mitte, where it has been on the shelves in Germany for the past year. [Credit: Jens Kalaene | Picture Alliance | Getty Images]
No Response Yet from Hims & Hers
Hims & Hers has yet to issue a formal statement addressing Novo Nordisk’s decision. However, during the company’s earnings call in May, CEO Andrew Dudum defended its position by stating that providers and patients deserve autonomy in their healthcare decisions.
“Ultimately what is right for them is their own discretion,” he said. “I think we strongly believe it’s really important that we maintain that independence.”
Wegovy Access Still Available Through Other Providers
Novo Nordisk confirmed it will continue offering the approved version of Wegovy through other telehealth companies that uphold its commitment to patient safety. Moore noted that several mass compounding pharmacies had already reduced or ceased their production of Wegovy alternatives, signalling growing compliance across the sector.
The drugmaker also stated its intention to collaborate with the FDA and pursue legal action where necessary to eliminate illegal compounding practices. It hopes these steps will further reinforce regulatory standards around telehealth and pharmaceutical distribution.
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Investor Caution on Hims Stock
Investors will likely tread carefully around stock in the coming weeks as the full impact of the Novo Nordisk fallout becomes clearer. With mounting legal risks and a sharp drop in market value, the telehealth company faces a critical period of scrutiny and potential restructuring.
As the healthcare sector continues evolving rapidly, especially in digital and remote platforms, companies like it & Hers must now balance innovation with stringent compliance to retain credibility and customers in a volatile market.
