Hims & Hers Health Stock Is Tumbling Monday: What's Happening?

Hims & Hers Health Inc HIMS shares are trading lower Monday after Novo Nordisk A/S NVO terminated its collaboration with the company.

What Happened: Novo Nordisk announced Monday that it will no longer be working with Hims & Hers Health. As a result, the company will no longer have direct access to Wegovy through the NovoCare Pharmacy.

Novo Nordisk alleged in a press release that Hims & Hers Health has failed to follow laws that prohibit mass sales of compounded drugs under the false appearance of “personalization” and has used deceptive marketing with disregard for patient safety.

“Novo Nordisk is firm on our position and protecting patients living with obesity. When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy,” said Dave Moore, executive vice president of Novo Nordisk’s U.S. operations.

“We will work with telehealth companies to provide direct access to Wegovy that share our commitment to patient safety – and when companies engage in illegal sham compounding that jeopardizes the health of Americans, we will continue to take action.”

The news comes after the U.S. Food and Drug Administration's (FDA) said in April that Semaglutide, the active ingredient in popular weight-loss drugs like Wegovy, could no longer be offered in compounded drugs by outsourcing facilities.

Shares of Hims & Hers Health fell as the FDA action took effect. Hims & Hers sells cheaper versions of popular weight-loss drugs, known as compounded drugs. Regulators allow compounded versions of drugs to enter the market to meet demand when there is a shortage. The company generated over $225 million in revenue in 2024 from its GLP-1 product.

Novo Nordisk on Monday said it’s “deeply concerned” and will continue to take proactive measures to keep U.S. patients safe from “knock-off drugs made with foreign illicit active pharmaceutical ingredients.”

HIMS Price Action: Hims & Hers Health shares were down 23.9% at $48.90 at the time of publication Monday, according to Benzinga Pro.

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Photo: Lori Butcher/Shutterstock.