Why Did Novo Nordisk Pull the Plug on Hims Collaboration?
The primary reason for the split was Hims' continued sale of compounded semaglutide.
Published 24 June 2025, 1:06 PM BST
A significant deal on weight loss drug collapsed in less than two months of its commitment, sparking a spat between Danish pharma giant Novo Nordisk and US telehealth platform Hims & Hers Health.
In April 2025, Novo Nordisk and Hims & Hers Health announced a partnership to make the weight-loss drug Wegovy accessible through Hims' platform at £479 ($649) per month and less than two months later on 23 June 2025, Novo abruptly terminated the collaboration, sending Hims' stock plummeting nearly 35 percent.
Novo accused Hims of illegal practices while Hims is alleging anti-competitive pressure.
Clash Over Compounded Drugs
The primary reason for the split was Hims' continued sale of compounded semaglutide, the active ingredient in Wegovy, after the US Food and Drug Administration (FDA) declared the drug's shortage resolved in April 2025.
Compounded drugs, made by pharmacies to address shortages, are allowed under specific conditions but prohibited for mass production under the guise of 'personalisation.'
Novo claimed Hims violated federal law by promoting and selling these unapproved knock-offs, citing safety risks from ingredients sourced from unregulated Chinese suppliers.
A Reuters report on 24 June 2025 noted Novo's concern that Hims' actions endangered patients, as the FDA had not inspected many of these foreign suppliers, per a Brookings Institution study.
Hims' refusal to phase out compounded versions, despite the shortage's end, led Novo to pull out, unwilling to associate with practices it deemed deceptive.
Navigate Legal and Ethical Tensions
The termination highlights broader regulatory scrutiny in the telehealth sector.
Novo's decision came days after a US judge upheld the FDA's removal of semaglutide from its shortage list, closing a loophole that allowed compounding pharmacies to produce cheaper alternatives.
Bloomberg reported on 23 June 2025 that Hims' marketing of these copies clashed with Novo's expectation that partners transition patients to FDA-approved Wegovy.
This public clash, with X posts calling Hims' practices 'illegal' and a 'criminal enterprise,' reflects deep tensions.
Analysts, like Citi's Daniel Grosslight, warned that Hims now faces significant litigation risks, potentially damaging its credibility in the £5.2 billion ($7.06 billion) weight-loss market.
Adapt to a Shifting Market
The fallout has major implications for both companies. For Hims, the loss of Novo's partnership threatens its ambitious revenue goals, with analysts like Truist's Jailendra Singh predicting a decline in traffic to its compounding business.
CNBC noted on 23 June 2025 that Hims' rivals, like Ro and LifeMD, continue their Novo partnerships, suggesting Hims' approach was an outlier.
For Novo, the move reinforces its commitment to patient safety and brand control, though it risks alienating uninsured consumers seeking affordable options.
Hims plans to continue offering Wegovy alongside compounded alternatives, banking on provider autonomy, but faces regulatory headwinds.
The telehealth sector, under pressure to comply with stricter FDA oversight, may see more partnerships unravel if companies can't align with pharmaceutical giants.
Safeguard Trust in Weight-Loss Care
Novo Nordisk's abrupt exit from its Hims partnership on 23 June 2025 highlights a critical divide in the booming weight-loss drug market, balancing affordability with safety.
By terminating the deal, Novo prioritised regulatory compliance and patient trust over a lucrative collaboration, accusing Hims of illegal and unsafe practices.
Consumers should stick to FDA-approved treatments like Wegovy to avoid risks from unverified compounds.
The Hims fallout is a wake-up call for telehealth firms: align with regulations or face consequences. Staying informed and choosing trusted providers ensures safety, and that's a lesson worth learning.
