Novo Nordisk Cuts Ties with Hims & Hers Over Safety Concerns

San Francisco, CA – The collaboration between pharmaceutical giant Novo Nordisk and telehealth company Hims & Hers has come to an abrupt end due to serious allegations from Novo Nordisk regarding safety violations.

In a statement released Monday, Novo Nordisk claimed that Hims & Hers had “failed to adhere to the law which prohibits mass sales of compounded drugs.” The pharma company expressed concern over what they described as “deceptive” marketing practices that jeopardize patient safety. This decision follows Novo Nordisk’s earlier announcement in April to offer its weight loss drug Wegovy through various telehealth platforms, including Hims & Hers.

“Hims & Hers has leaned on compounding, which accounted for 15% of revenues last year, as part of the growth story it has pitched to investors,” said Michael Schnell, healthcare mergers and acquisitions director at consultancy West Monroe. He explained that Novo Nordisk accused Hims & Hers of steering patients away from the approved Wegovy towards unapproved compounded alternatives, which they refer to as knockoff drugs.

Novo Nordisk stated that Wegovy will no longer be available through Hims & Hers, terminating the partnership due to claims that the online health company marketed “illegitimate, knockoff versions of Wegovy that put patient safety at risk.” This move comes less than two months after both companies announced they were entering a “long-term collaboration” aimed at enhancing access to obesity treatment.

The Danish drug manufacturer highlighted its “deep concern” regarding unapproved drugs made with foreign and illicit active pharmaceutical ingredients. As a result of this news, shares of Hims & Hers plummeted more than 34% on Monday, whereas Novo Nordisk’s stock declined over 5%.

In response, Hims & Hers CEO Andrew Dudum expressed disappointment in a post on X, stating that the company feels Novo Nordisk is misleading the public regarding their practices.