Novo Nordisk announced this week it is terminating its partnership with Hims & Hers Health, citing concerns over what it described as “deceptive marketing” and the alleged sale of unauthorized versions of its FDA-approved weight-loss drug, Wegovy, CBS News reports.
The decision comes just weeks after the two companies entered a collaboration aimed at expanding access to obesity treatment via telehealth. In a statement, the Danish pharmaceutical firm said it found that Hims & Hers had distributed “illegitimate, knockoff versions” of Wegovy that could pose risks to patient safety.
“After over one month into the collaboration, Hims & Hers Health, Inc. has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization’ and are disseminating deceptive marketing that put patient safety at risk,” a Novo Nordisk spokesperson told CBS MoneyWatch. “This is unacceptable, and that is why we have decided to end the collaboration.”
Shares of Hims & Hers Health fell sharply in response to the announcement, dropping more than 30% to $44.10. The company had projected over $700 million in revenue from its weight-loss services this year — a forecast now in question without access to Wegovy.
Hims & Hers did not immediately comment on the allegations or the termination of the partnership.
Novo Nordisk initially began working with telehealth companies, including Hims & Hers, in response to a nationwide shortage of Wegovy. The aim was to transition patients away from compounded versions of semaglutide — the active ingredient in Wegovy — and toward the FDA-approved medication.
The FDA has recently tightened restrictions on compounding pharmacies, which often prepare non-branded or modified versions of name-brand medications. Novo Nordisk stated that many of the ingredients used in these compounded alternatives originate from foreign suppliers, particularly in China, and are not subject to FDA inspection.
“US patients should not be exposed to knock-off drugs made with unsafe and illicit foreign ingredients,” the company said in its release.
Despite severing ties with Hims & Hers, Novo Nordisk will continue to distribute Wegovy through other telehealth providers that it says meet its standards for safety and compliance, including LifeMD and Ro.
Wegovy, which received FDA approval for adult obesity treatment in March 2024, is part of a rapidly growing category of GLP-1 medications used for weight loss and diabetes management. Demand for these drugs has surged nationwide, with recent data from KFF indicating that approximately one in eight US adults have used such treatments.
