Hims & Hers Stock Plummets as Novo Nordisk Ends Wegovy Partnership Over Safety Concerns
Hims & Hers Health Inc. (HIMS) saw its shares crash nearly 30% on Monday after Novo Nordisk, the pharmaceutical giant behind the popular weight-loss drug Wegovy, abruptly terminated its partnership with the telehealth company.
In a statement, Novo Nordisk cited concerns over “deceptive promotion and selling of illegitimate, knockoff versions of Wegovy”, which it said posed serious risks to patient safety. The collaboration had only been in place since late April.
Novo Nordisk alleged that some of the weight-loss compounds sold by Hims & Hers were made using illicit active pharmaceutical ingredients sourced from foreign suppliers, including entities in China. As a result, Hims & Hers customers will no longer have direct access to Wegovy through Novo Nordisk’s NovoCare Pharmacy.
The fallout sent Hims & Hers stock spiraling 29.2% in morning trading—on track for its worst single-day loss since going public in September 2019. Novo Nordisk’s U.S.-listed shares also declined, with NVO down 5.86% and NOVO.B falling 5.29%.
This dramatic reversal comes after a recent surge in Hims & Hers stock, which had jumped 125.5% since the partnership was first announced. Novo Nordisk shares had also gained 17.8% during that period.
Meanwhile, Eli Lilly & Co. (LLY), Novo’s main rival in the weight-loss drug space, saw its shares rise 3.5% as competition between the two companies heats up. Eli Lilly recently made all doses of its Zepbound treatment available for $499 per month, intensifying the price war in the booming weight-loss drug market.
Hims & Hers has not yet responded to requests for comment.
