Hims & Hers Health Inc. (HIMS) experienced a 24-hour plunge of 8.43% during Thursday's trading session and extended hours. The telehealth company's stock faced significant selling pressure following a controversial product launch that drew immediate legal threats from a major pharmaceutical competitor.

The sharp decline was triggered after Novo Nordisk announced plans to pursue legal and regulatory action against Hims & Hers. The Danish drugmaker condemned Hims & Hers' launch of a cheaper, compounded version of its blockbuster Wegovy weight-loss pill at an introductory price of $49 per month as "illegal mass compounding" that poses significant risks to patient safety.

Adding to the market uncertainty, FDA Commissioner Marty Makary stated that the agency would take swift action against companies marketing "illegal copycat drugs," creating concerns about the regulatory viability of Hims & Hers' new offering. This combination of competitive legal threats and regulatory scrutiny prompted investors to sell shares, driving the substantial price decline.