MW Hims & Hers' stock plunges. Here's why Wegovy parent ended its partnership with the company.

By Steve Gelsi

Novo Nordisk, maker of the weight-loss drug Wegovy, cuts ties with Hims & Hers, alleging illegal compounding of the drug

Hims & Hers Health Inc.'s stock fell sharply on Monday after pharmaceutical giant Novo Nordisk, maker of the weight-loss drug Wegovy, said it was ending a collaboration with the telehealth-consultation company less than two months after it started.

Novo Nordisk said in a prepared statement that it has ended its collaboration with Hims & Hers $(HIMS)$ due to "deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk."

Hims & Hers did not immediately respond to a request for comment.

Hims & Hers' stock sank 29.2% in morning trading to put it on track for the largest one-day loss since the company went public in September 2019. The current record selloff for the shares is the 25.8% drop on Feb. 21, according to FactSet data.

Denmark-based Novo Nordisk's U.S.-listed shares $(NVO)$ (DK:NOVO.B) slumped 6.5% in morning trading.

Since the collaboration was announced on April 29, Hims & Hers' stock had rocketed 125.5% through Friday, and Novo Nordisk shares had climbed 17.8%.

Also read: Hims & Hers' stock soars after teaming up with Wegovy maker

Novo Nordisk said direct access to Wegovy will no longer be available to Hims & Hers Health clients through the NovoCare Pharmacy. The company said the "knock-off" weight-loss drugs are made with "foreign illicit active pharmaceutical ingredients."

Ingredients in the drugs "sold by telehealth entities and compounding pharmacies are manufactured by foreign suppliers in China," Novo Nordisk said.

Novo Nordisk has been competing on weight-loss drugs with Eli Lilly & Co. $(LLY)$, which recently made all doses of Zepbound available for $499 a month as the price war between the companies continued.

Eli Lilly shares rose 3.5% in morning trading Monday.

-Steve Gelsi

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June 23, 2025 10:05 ET (14:05 GMT)

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