MW Hims & Hers stock poised for heavy losses after quick U-turn on plan for oral Wegovy competitor

By Steve Goldstein

Hims & Hers shares were poised for heavy losses on Monday.

Hims & Hers stock tumbled in early action on Monday after the U.S. company quickly reversed plans to introduce its own version of Novo Nordisk's Wegovy oral weight-loss drug.

Facing a threat of litigation not just from Novo Nordisk, but also the federal government - the general counsel for Health and Human Services made a referral to the Justice Department for potential violations of the Federal Food, Drug, and Cosmetic Act - the company said it wouldn't go ahead with its announcement made only last week.

"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," said the company.

Hims & Hers stock $(HIMS)$ plunged 17% after falling 2% on Friday.

Novo Nordisk shares (DK:NOVO.B) (NVO) jumped 8% in early Copenhagen trade.

Companies are allowed to make what are called compounded drugs for personal use as well to meet market shortages. Novo Nordisk so far hasn't had difficulty supplying its oral drug, which only hit the market in January.

"It looks like the company's seemingly blatant attempts at counterfeiting patented weight-loss drugs via compounding finally went too far," said On the Street Substack author Herb Greenberg.

The question now is whether Hims & Hers also has jeopardized its business creating compounded injectables.

The U.S. Food and Drug Administration said it "is announcing its intent to take decisive steps to restrict GLP-1 active pharmaceutical ingredients (APIs) intended for use in non-FDA-approved compounded drugs that are being mass-marketed by companies - including Hims & Hers and other compounding pharmacies - as similar alternatives to FDA-approved drugs."

The FDA said it would crack down on promotional materials.

"In promotional materials, companies cannot claim that non-FDA-approved compounded products are generic versions or the same as drugs approved by FDA. They also cannot state compounded drugs use the same active ingredient as the FDA-approved drugs or that compounded drugs are clinically proven to produce results for the patient," the FDA said.

-Steve Goldstein

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February 09, 2026 03:30 ET (08:30 GMT)

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