Hims & Hers stock plunged nearly 35% on Monday after Novo Nordisk announced it was ending their partnership to offer its weight-loss drug Wegovy through Hims’ telehealth platform. Novo accused Hims of violating laws by selling compounded versions of semaglutide—the active ingredient in Wegovy—under the guise of personalized medicine, which it claims is illegal for mass sales. Novo’s shares also dropped around 5.5%.
Hims & Hers did not comment directly but CEO Andrew Dudum responded on X, alleging Novo was pressuring the company to push Wegovy and infringe on provider independence. The partnership, announced just last month, was part of a broader trend to address GLP-1 drug shortages by offering direct access via telehealth. While the FDA allows compounded versions during shortages, some pharmacies have continued producing copycats even after supply resumed, using regulatory loopholes.
Eli Lilly, another GLP-1 manufacturer, is also dealing with telehealth platforms offering compounded alternatives. The broader GLP-1 landscape remains volatile, and Hims & Hers is feeling the impact—not just from the Novo fallout, but also from slowing growth. Subscription growth on the platform has declined, with year-over-year revenue rising just 29% in Q1 2025 compared to 45% in Q3 2024. Analysts warn that an upcoming FTC rule simplifying subscription cancellations could further hurt retention, and the company may also face regulatory scrutiny after it promoted compounded GLP-1s in a Super Bowl ad.
Still, analysts see a potential upside in hormone replacement therapy (HRT), a $3–10 billion market. Bank of America estimates Hims could generate $4–12 million from HRT in 2025, with potential to scale rapidly thanks to its strong direct-to-consumer brand.
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