From Nasdaq: 2025-06-25 22:47:00

Hims & Hers Health (NASDAQ: HIMS) saw a 35% stock price drop after Novo Nordisk terminated their partnership, raising concerns about long-term potential in the weight-loss medication market.

The alliance with Novo Nordisk was expected to be transformative for HIMS, offering access to Wegovy, the top-selling weight-loss drug. However, the collaboration ended abruptly due to concerns about illegal practices by HIMS.

The dispute highlights tensions in the weight-loss drug space, with regulatory issues surrounding compounding pharmacies and the sale of alternative versions of drugs.

Without the partnership, HIMS stock could see a further 40% decline, signaling ongoing challenges and uncertainties for the company’s growth prospects.

HIMS may face regulatory hurdles and revenue challenges without direct sales of Wegovy, leading to questions about the sustainability of its business model.

Investors should be cautious about HIMS’s future, as the loss of the partnership represents a significant shift in the company’s growth potential and increased regulatory risks.

A wait-and-watch approach may be prudent for investors, considering the uncertainties surrounding HIMS’s growth avenues and market reaction to the breakup.

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Read more at Nasdaq: What’s Happening With HIMS Stock?