Shares of Hims & Hers plunged over 30% after Wegovy maker Novo Nordisk abruptly ended their partnership on Monday, accusing the telehealth company of selling unauthorized versions of its popular weight-loss drug. As the Wall Street Journal reports, the split exposes growing tensions between pharmaceutical giants and telehealth firms vying for control in the booming obesity treatment market.
- One side: The Danish drugmaker accused Hims & Hers of selling unauthorized compounded versions of the weight-loss drugs and claimed it used deceptive marketing that could put patient safety at risk.
- The other side: Hims & Hers pushed back, saying Novo Nordisk pressured it to prioritize Wegovy for patients, regardless of whether it was the most suitable treatment.
- Stock fallout: CNBC reports that shares of Hims & Hers closed more than 34% lower on Monday, and Novo Nordisk's stock was down 5%.
- Context: The breakup comes just weeks after the two companies announced a collaboration to provide Wegovy to Hims & Hers customers, marking Novo's first major step into telehealth partnerships. The fallout highlights mounting tension between drugmakers and telehealth platforms over sales of brand-name weight-loss drugs and cheaper, compounded alternatives.
- Hims: "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," said Hims & Hers CEO Andrew Dudum, per Reuters. He said the company will continue to sell Wegovy, as well as other treatments.
- Novo: "Over one month into the collaboration, Hims & Hers Health, Inc has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of 'personalization' and are disseminating deceptive marketing," said a spokesperson.
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