Hims & Hers Health Inc. (HIMS) shares are soaring 5.16% in pre-market trading on Wednesday, rebounding from a massive 35% plunge the previous day. The stock's recovery comes as CEO Andrew Dudum firmly stated the company's intention to continue offering low-cost weight-loss injections, despite the recent termination of its distribution partnership with Novo Nordisk.
The telehealth company faced a significant setback when Novo Nordisk ended their partnership on Monday, citing "deceptive marketing" related to compounded versions of its weight-loss drug Wegovy. However, Dudum remains resolute, stating in an interview, "We're upset that Novo is feeling the pressure and not comfortable, but there's just no way in hell we're going to cave on that, no matter who the pharma company is or what the partnership looks like."
Investors appear to be responding positively to Hims & Hers Health's stance, as the company refutes Novo Nordisk's characterization of their practices. Dudum called Novo's comments "misleading" and suggested that the drugmaker had been pressuring them to steer patients towards Wegovy over its compounded medications. The CEO's commitment to continuing the sale of cheaper weight-loss shots seems to be restoring some confidence in the stock, as the market anticipates the company's ability to maintain its position in the competitive weight-loss drug market.
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