Novo Nordisk announced Monday that it has terminated its collaboration with Hims & Hers Health, citing concerns over the telehealth company’s promotion and sale of compounded alternatives to Wegovy, its FDA-approved weight loss drug.
The decision comes just months after the two companies partnered to expand access to Wegovy through online platforms.
The Danish pharmaceutical firm stated that Hims & Hers continued to promote compounded versions of semaglutide — the active ingredient in Wegovy — even after the drug became widely available again in the US. The FDA permits compounding only in limited medical situations, and the agency has tightened restrictions since Wegovy was officially deemed back in supply this spring.
Novo Nordisk alleged that Hims & Hers violated laws prohibiting the mass sale of compounded drugs and engaged in marketing practices it described as “deceptive,” claiming these actions pose potential risks to patient safety.
“We expected the focus on compounding would decrease over time. When that didn’t happen, we had to act in the interest of patients,” said Dave Moore, Novo Nordisk’s executive vice president for US operations.
He added that the company will continue to work with telehealth providers who align with its commitment to “safe and effective” treatments.
Shares of Hims & Hers dropped by nearly 28% following the announcement, while Novo Nordisk stock declined by over 6%.
In response, Hims & Hers CEO Andrew Dudum defended the company’s practices, stating that Novo Nordisk pressured the telehealth provider to promote Wegovy over potentially suitable alternatives.
“We will not compromise the integrity of our platform to appease a third party,” Dudum said in a statement on X, formerly Twitter.
Dudum also reaffirmed the company’s commitment to offering a range of treatment options, including Wegovy, tailored to individual patient needs.
The development comes amid growing scrutiny of compounded GLP-1 drugs, which have surged in popularity as alternatives during supply shortages of branded products like Wegovy. While legal in certain cases, compounded medications are not FDA-approved, and concerns have been raised about the origin and quality of their active ingredients.
Novo Nordisk noted that an internal investigation revealed many compounded versions were made using ingredients from foreign manufacturers, primarily in China, some of which have not been inspected or approved by the FDA. The company cited a Brookings Institution report highlighting quality assurance issues at some of these overseas suppliers.
Industry analysts, including Citi’s Daniel Grosslight, suggested the split could increase legal and regulatory risks for Hims & Hers. Grosslight expressed surprise that the initial partnership had not included stricter limitations on the company’s compounding practices.
The termination underscores ongoing tensions between traditional pharmaceutical firms and telehealth platforms over the growing direct-to-consumer model and the use of compounded medications. Novo Nordisk stated it will continue working with telehealth providers that prioritize regulatory compliance and patient safety.
