Novo Nordisk terminated its deal with Hims & Hers just weeks after announcing a collaboration to expand access to the blockbuster weight-loss drug Wegovy®.
The decision follows concerns around the marketing and compounding of versions of Wegovy®, a popular GLP-1 weight-loss medication. The split came after concerns were raised about how things were being done, leading people across telehealth, pharma, and digital health to take a closer look.
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Table of Contents
➜ Why Novo Nordisk Terminated Its Deal with Hims & Hers: Key Allegations
➜ What Are the Legal Issues Around Compounding Wegovy®?
➜ How Did Hims & Hers Respond to the Allegations?
➜ What Are the Financial and Legal Consequences for Hims & Hers?
➜ How Does This Affect the Weight-Loss Drug Market?
➜ What Does This Mean for Telehealth Companies Going Forward?
➜ Visit iData For Latest MedTech Market Reports
Key Takeaways
- Novo Nordisk terminated its Wegovy® partnership with Hims & Hers, citing unlawful compounding and deceptive marketing.
- Hims & Hers’ stock dropped 30%, followed by investor lawsuits and questions about the platform’s regulatory compliance.
- Compounded GLP-1 drugs are no longer permitted at scale post-shortage, making most telehealth promotions of these versions legally risky.
- Telehealth companies must prioritize FDA compliance as they move into high-demand therapeutic markets like obesity treatment.
- This dispute shows growing friction between traditional pharma and digital-first platforms, especially in the wake of blockbuster drugs.
Why Novo Nordisk Terminated Its Deal with Hims & Hers: Key Allegations
In April 2025, Novo Nordisk partnered with a telehealth provider Hims & Hers to help expand access to its weight-loss drug Wegovy®.
But by June, Novo had pulled the plug, accusing Hims & Hers of continuing to sell compounded knockoffs of Wegovy®, even after the FDA ruled that supply of the original drug had normalized, eliminating most legal grounds for compounding.
Novo also alleged that Hims & Hers promoted these unapproved products under misleading claims of “personalization,” potentially endangering patient safety and violating federal law.
What Are the Legal Issues Around Compounding Wegovy®?
During drug shortages, the FDA permits compounding pharmacies to make custom versions of medications like Wegovy®.
Once the shortage ends, compounding becomes strictly regulated again. Novo Nordisk claims that Hims & Hers continued to market and distribute these versions at scale, outside the narrow FDA allowances.
Under U.S. law, compounding must be done for individual patients based on specific prescriptions, not mass-marketed or sold as cheaper alternatives to branded drugs.
How Did Hims & Hers Respond to the Allegations?
Hims & Hers pushed back hard. CEO Andrew Dudum called Novo Nordisk’s actions “anti-competitive,” alleging that the pharma giant was trying to limit patient choice and force telehealth providers to exclusively prescribe branded Wegovy®.
According to the company, some patients genuinely need compounded alternatives, whether due to allergies, dose adjustments, or other medical reasons, and removing access entirely undermines care quality.
What Are the Financial and Legal Consequences for Hims & Hers?
Hims & Hers’ stock price plummeted more than 30% in a single day following the announcement. Investors quickly filed a lawsuit, claiming the company failed to disclose risks tied to its marketing and compounding practices.
The controversy also raises concerns about Hims & Hers’ ability to partner with other pharmaceutical firms in the future, particularly in sensitive therapeutic areas like weight loss.
How Does This Affect the Weight-Loss Drug Market?
GLP-1 drugs like Wegovy® and Ozempic® have exploded in popularity, becoming one of the most lucrative segments in pharma. Telehealth platforms, eager to capitalize on the demand, have pushed to offer quicker, more accessible care.
This incident highlights the rising tension between big pharmaceutical companies and newer telehealth startups. It also shows that regulators and healthcare providers are watching closely to make sure the rules are being followed, especially as more people try to get these in-demand medications.
What Does This Mean for Telehealth Companies Going Forward?
This split sends a warning to digital health startups: pushing boundaries is exciting, but they still have to follow strict healthcare rules. As GLP-1 drugs become more common in treating obesity and diabetes, companies need to be extra careful to avoid legal or reputational trouble.
The FDA’s shifting stance on compounding is one to watch, and a reminder that even the most high-tech platforms still need to respect the basics of medical regulation.
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