June 23, 2025 — Pharmaceutical giant Novo Nordisk has officially ended its partnership with telehealth company Hims & Hers Health, citing concerns over the company’s alleged sale of compounded versions of its blockbuster weight-loss drug Wegovy.
According to Novo Nordisk, the decision comes after Hims & Hers reportedly engaged in the promotion and sale of “copycat” compounded versions of semaglutide (the active ingredient in Wegovy), which the company says violates their agreement and raises safety concerns. In response, Novo has immediately halted all direct shipments of Wegovy to Hims & Hers, effective this week.
The fallout was swift in the markets. Shares of Hims & Hers (NASDAQ: HIMS) plummeted by over 20% in premarket trading following the news, erasing millions in market capitalization within hours. The company has not yet issued a formal response to the contract termination.
This move reflects increasing scrutiny in the booming weight-loss drug industry, especially concerning telehealth providers offering compounded versions of GLP-1 medications. Compounded drugs, often advertised as affordable alternatives, are not FDA-approved and carry potential risks due to inconsistent dosages or lack of regulation.
Novo Nordisk has taken a firm stance to protect its intellectual property and ensure patient safety. “We are committed to maintaining the integrity of our therapies and ensuring patients receive medications that meet the highest quality standards,” a Novo spokesperson stated.
Industry analysts believe this could have broader implications for the telehealth sector, as regulatory and legal pressures mount against companies marketing alternative versions of in-demand medications like Ozempic and Wegovy. With demand for GLP-1 drugs skyrocketing globally, the battle between major pharma and tech-based health startups is heating up.
Hims & Hers had announced strong revenue growth earlier this year, in part due to the expansion of its weight-loss treatment offerings. However, losing direct access to Novo Nordisk’s supply chain may force the company to reevaluate its future strategy in the obesity care market.
This development underscores the challenges faced by disruptor companies in navigating compliance and brand partnerships within regulated pharmaceutical landscapes.