Shares of Hims & Hers Health (HIMS -34.62%) are imploding on Monday, down 32% as of 3:03 p.m. ET. The drop comes as the S&P 500 rose 0.8% and the Nasdaq Composite rose 0.7%.
Novo Nordisk announced it will cut ties with Hims & Hers, saying the telehealth provider can no longer sell compounded versions of its blockbuster GLP-1 weight loss drug Wegovy.
Hims & Hers loses a major partnership
Novo Nordisk announced this morning that it is ending a partnership with Hims & Hers that allowed the telehealth provider to sell Novo's blockbuster weight-loss drug, Wegovy.
According to Novo Nordisk, Hims & Hers "failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of 'personalization.'" Hims & Hers offered compounded versions of Wegovy, claiming it offered medically necessary personalization for some patients. The compounded versions, according to Novo, were sourced out of China and the labs producing them failed to meet standards or be approved by U.S. regulators.
Image source: Getty Images.
In a statement on X, Hims & Hers CEO Andrew Dudum said the company is "disappointed to see Novo Nordisk management misleading the public" and that it would "not compromise the integrity of our platform to appease a third party."
Its valuation is steep
The loss of its ability to sell Wegovy is a significant hit to Hims & Hers' business. The massive drop today in its stock reflects this, but even after falling more than 30%, the stock is still too expensive for my taste.
