Hims & Hers hit as Novo Nordisk withdraws weightloss drugs
Hims & Hers shed a lot of weight in Monday's stock-trading, after it lost access to GLP-1 weight-loss drugs.
The e-commerce seller of over-the-counter treatments for weight-loss, hair regrowth, sexual health and erectile dysfunction has been cut off by Danish drug maker Novo Nordisk.
Novo Nordisk, Europe's largest drugmaker and owner of the Ozempic and Wegovy brands, terminated a short-lived collaboration with Hims & Hers, citing concerns over products on the platform.
The Danish firm, in a statement, cited "deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk."
It added that Hims & Hers failed to adhere to the law prohibiting mass sales of compounded drugs under the guise of personalization, and Novo Nordisk described the marketing as "deceptive".
"When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy," said Dave Moore, Novo Nordisk EVP of US Operations.
"We will work with telehealth companies to provide direct access to Wegovy that share our commitment to patient safety – and when companies engage in illegal sham compounding that jeopardizes the health of Americans, we will continue to take action."
Hims & Hers saw its stock drop $20 apiece, losing 31%, to $43.90.
Novo Nordisk and Hims & Hers launched the 'telehealth' tie-up in April, and in May, the e-commerce firm began an advertised cut-price offer for Wegovy, promoting a six-month supply priced at $560 per month, discounted from $1,350.
