Hims & Hers Health Crashes After Novo Nukes GLP-1 Partnership Over "Illegal Mass Compounding" Scheme

Shares of Hims & Hers Health crashed in premarket trading after Novo Nordisk terminated its GLP-1 partnership with the telehealth firm, citing violations of federal law related to mass sales of compounded drugs disguised as "personalized" treatments, along with deceptive marketing practices that allegedly jeopardized patient safety.

Following the FDA's resolution of the national Wegovy shortage in April, Novo partnered with select telehealth companies, including Hims & Hers, to transition patients from unregulated, compounded versions to the approved version of Wegovy. However, Novo alleges that Hims & Hers failed to comply with legal and safety standards... 

Here's more from Novo:

In late April, the FDA resolved the Wegovy shortage based on its conclusion that Novo Nordisk is fully meeting current and projected nationwide demand for this medicine. In support of transitioning patients from knock-off compounded versions to authentic, FDA-approved Wegovy through NovoCare Pharmacy, Novo Nordisk began collaborating with telehealth companies. 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.

Novo Nordisk is deeply concerned and is continuing to take proactive measures to keep US patients safe from knock-off drugs made with foreign illicit active pharmaceutical ingredients. Based on Novo Nordisk's investigation, the "semaglutide" active pharmaceutical ingredients that are in the knock-off drugs sold by telehealth entities and compounding pharmacies are manufactured by foreign suppliers in China.

Dave Moore, Executive Vice President, US Operations of Novo Nordisk, stated:

"Novo Nordisk is firm on our position and protecting patients living with obesity. When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy.

"We will work with telehealth companies to provide direct access to Wegovy® that share our commitment to patient safety – and when companies engage in illegal sham compounding that jeopardizes the health of Americans, we will continue to take action."

In markets, shares of Hims & Hers Health plunged as much as 20% in premarket trading.

This comes after the stock closed near a 52-week high of around $64 on Friday. Short interest has surged to 34.8% of the float—equivalent to roughly 61 million shares—highlighting elevated bearish positioning.

The partnership is still prominently featured on Hims & Hers Health's website.

Hims & Hers’ entire business model is now under scrutiny, after its largest partner—Novo Nordisk—effectively exposed it as built on grey areas. What was marketed as "personalized care" is looking like a mass-scale compounding scheme...