Novo Nordisk has decided to terminate its partnership with Hims & Hers Health due to allegations of “deceptive marketing” related to its weight-loss drug, Wegovy. The Danish pharmaceutical company announced on Monday that Wegovy would be removed from Hims & Hers, citing concerns that the San Francisco-based telehealth provider was distributing “illegitimate, knockoff versions” of the drug, which could endanger patient safety.
This decision follows just two months after the companies had established a collaborative effort aimed at making obesity treatments more accessible. Following the announcement, Hims & Hers saw a significant drop in its stock price, falling over $20, or about 31%, to $44.10.
Hims & Hers has not publicly commented on the situation, but the company had projected over $700 million in revenue from weight-loss services this year, a goal that may now be harder to achieve without Wegovy sales. Novo Nordisk began selling Wegovy through telehealth providers, including Hims & Hers, in response to a nationwide drug shortage.
Their intent was to transition patients away from “knock-off, compounded versions” towards the FDA-approved semaglutide drug. This decision came on the heels of an FDA order aimed at limiting compounding pharmacies from selling imitation weight loss drugs.
A spokesperson for Novo Nordisk expressed concern over Hims & Hers’ failure to comply with legal guidelines prohibiting mass production of compounded drugs under the pretext of “personalization.” The spokesperson stated that the marketing practices employed by Hims & Hers were unacceptable as they jeopardized patient safety.
In recent years, demand for GLP-1 drugs like Wegovy has soared, with a growing number of adults in the U.S. utilizing these treatments. Novo Nordisk emphasized its commitment to patient safety, asserting that it would continue to collaborate with other telehealth platforms that adhere to safe practices.