By George Glover

Hims & Hers Health stock was plummeting on Monday after the online drug retailer scrapped a plan to offer a knock-off version of the Wegovy weight-loss pill in the face of a potential probe by U.S. regulators.

Shares tanked 15% to $19.65 ahead of the opening bell. Futures tracking the S&P 500 were down 0.1% after the previous session's relief rally.

The move lower came after Hims said it would no longer sell its compounded weight-loss pill following regulatory scrutiny.

The pill would have included semaglutide, the key ingredient in the weigh-loss medication which Danish drugmaker Novo Nordisk markets under the brand name Wegovy.

"Since launching the compounded semaglutide pill on our platform, we've had constructive conversations with stakeholders across the industry. As a result, we have decided to stop offering access to this treatment," Hims said in a statement.

The Department of Health and Human Services (DHHS) referred the company to the Department of Justice for investigation last week.

DHHS general counsel Mike Stuart said in a post on X that the referral was for investigation for potential violations by Hims of the Federal Food, Drug, and Cosmetic Act and applicable Title 18 provisions.

Heightened regulatory scrutiny could be a major blow for Hims, which makes money selling cheaper, compounded versions of popular weight-loss medications.

The retailer launched its Wegovy copycat on Thursday. The new pill would have sold at a sharp discount -- Hims' introductory plan cost $49 a month. Standard-dose Wegovy pills sell for $149 a month.

Novo Nordisk American depositary receipts gained 6.7% in Monday's premarket. Shares in Eli Lilly, which makes the weight-loss drugs Zepbound and Mounjaro, added 2.2%.

Write to George Glover at george.glover@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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February 09, 2026 05:11 ET (10:11 GMT)

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