Novo Nordisk ends collaboration with Hims & Hers over concerns about cheaper drug promotion.

From CNBC: 2025-06-23 16:01:00

Novo Nordisk is ending its collaboration with Hims & Hers due to concerns about the telehealth company’s sales and promotion of cheaper knock-offs of the weight loss drug Wegovy. Shares of Hims & Hers closed more than 34% lower, while Novo Nordisk’s stock closed more than 5% lower.

Despite the end of the Wegovy shortage, compounding pharmacies were legally restricted from making and selling cheaper, unapproved versions of the drug by May 22. Novo Nordisk accused Hims & Hers of “deceptive” marketing that is putting patient safety at risk.

Hims & Hers CEO Andrew Dudum said in a statement that the company will not compromise the integrity of their platform to appease a third party. Citi analyst Daniel Grosslight said the end of the collaboration increases legal risk for Hims & Hers substantially.

During FDA-declared shortages, pharmacists can legally make compounded versions of brand-name medications. Novo Nordisk will continue offering the branded version of Wegovy through telehealth organizations that share their commitment to safe and effective medical treatment.

Novo Nordisk conducted an investigation that found the active ingredients used in Wegovy knock-offs are manufactured by foreign suppliers in China. The drugmaker cited a report from the Brookings Institution in April, which found that many of these suppliers had drug quality assurance violations.



Read more at CNBC: Novo Nordisk ends Wegovy deal with Hims & Hers