Novo Nordisk Cuts Hims & Hers Deal Over Alleged “Copycat” Wegovy—Stocks Dive

Novo Nordisk Cuts Ties with Hims & Hers Over Alleged “Copycat” Wegovy Drugs

In a stunning reversal less than 60 days after announcing a collaboration, Novo Nordisk has ended its partnership with Hims & Hers, accusing the telehealth platform of marketing unauthorized, compounded versions of Wegovy—Novo’s leading weight-loss drug—under the guise of personalization.

Market Fallout

• Hims & Hers stock plunged ~32–35% in a single session, wiping out months of gains .

• Novo’s shares also dropped around 5–6%, reflecting investor concerns over the disrupted sales strategy.

Novo’s Key Allegations

• Hims allegedly continued illegally mass selling compounded semaglutide, sourced from third-party suppliers in China.

• Novo claims this poses serious safety risks to patients and breaches both legal and marketing standards.

• Novo now says Wegovy will only be distributed via their own NovoCare-certified partners.

Hims & Hers Pushback

• CEO Andrew Dudum accused Novo of anti-competitive tactics, claiming pressure was applied to limit clinical autonomy and force Wegovy prescriptions.

• Hims asserts it will continue offering alternative weight-loss solutions—including Wegovy—despite the split.

Industry Implications

• The breakup highlights tensions between branded drugmakers and telehealth platforms, especially over compounding pharmacy loopholes after FDA shortages ended.

• Regulatory risks now loom over compounding practices, already under scrutiny after FDA policy updates.

• Competitor Eli Lilly, with its drug Zepbound, may benefit as Novo retools its distribution strategy.

Final Takeaway

What began as a promising telehealth-led rollout of Wegovy has unraveled spectacularly—underscoring broader challenges in balancing access, safety, and IP control in the booming weight-loss market. With investor jitters escalating, all eyes are now on how both companies regroup—and where compounding regulations go next.