Novo Nordisk Terminates Partnership with Hims & Hers Amid Compounding Dispute
Novo Nordisk, the maker of the popular weight-loss drug Wegovy, has abruptly ended its partnership with telehealth provider Hims & Hers Health. The decision, announced by the Danish pharmaceutical giant, cites deep concerns over Hims & Hers’ promotion and sale of what Novo Nordisk calls “illegitimate, knockoff versions” of the drug, alleging these practices endanger patient safety.
The termination comes less than two months after the collaboration was first announced, intended to allow Hims & Hers to sell authentic Wegovy directly to patients. The news sent Hims & Hers stock plummeting by nearly 27% in a single day, marking its largest-ever daily decline, while Novo Nordisk’s shares saw a more modest dip.
Why Novo Nordisk Pulled the Plug: Concerns Over Compounding and Safety
Novo Nordisk explicitly stated that the partnership was terminated because Hims & Hers allegedly “failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization’ and are disseminating deceptive marketing that put patient safety at risk.”
Compounded drugs are custom-made by pharmacies, typically for patients with specific needs like allergies or when a necessary dosage isn’t commercially available. Regulatory allowances for widespread compounding are significantly restricted when a drug is readily available and not on the FDA’s shortage list. The FDA declared the shortage of semaglutide, Wegovy’s active ingredient, officially over in February 2025.
Novo Nordisk viewed its partnership with select telehealth providers, including the now-terminated deal with Hims & Hers, as a way to support patients transitioning from compounded versions to the authentic, FDA-approved Wegovy, making it available directly through the NovoCare® Pharmacy platform. However, Novo Nordisk found Hims & Hers’ continued practices unacceptable during this transition period.
Illicit Ingredients and Patient Risk
A major point of contention highlighted by Novo Nordisk is the source and quality of ingredients used in compounded versions. The company expressed profound concern about “knock-off drugs” made with “foreign illicit active pharmaceutical ingredients” (APIs). Novo Nordisk’s investigation suggests the semaglutide APIs used in many compounded drugs sold by telehealth entities and compounding pharmacies are manufactured by foreign suppliers, specifically mentioning China.
According to a report from the Brookings Institute referenced by Novo Nordisk, the FDA has never authorized or approved the manufacturing processes used by these foreign suppliers, nor has the FDA reviewed or authorized the quality of their semaglutide production. The report indicates that many of these suppliers have never been inspected by the FDA, and those that were often had drug quality assurance violations. Novo Nordisk argues that U.S. patients should not be exposed to products made with potentially unsafe and illicit foreign ingredients.
Dave Moore, Executive Vice President of U.S. Operations at Novo Nordisk Inc., reinforced the company’s position in a release. “Novo Nordisk is firm on our position and protecting patients living with obesity,” Moore stated. He added that patients prescribed semaglutide are “entitled to receive authentic, FDA-approved and regulated Wegovy®,” and that Novo Nordisk would continue to take action against companies involved in what he termed “illegal sham compounding that jeopardizes the health of Americans.”
Partnership’s Brief History and Market Reaction
The partnership, announced in April 2025 alongside similar deals with Ro and LifeMD, was seen as a strategic move for both parties. For Novo Nordisk, it offered access to telehealth channels and potentially uninsured consumers. For Hims & Hers, which had previously focused on compounded alternatives during shortages, it provided an opportunity to offer a sought-after name-brand product. The initial announcement had caused Hims & Hers stock to jump significantly.
However, the quick termination underscores the irreconcilable differences, particularly regarding Hims & Hers’ ongoing sale of compounded versions. While compounded versions might offer higher profit margins for telehealth providers compared to selling branded drugs, Novo Nordisk clearly views this practice as illegal “mass compounding” once the official shortage is over and the branded product is available.
Part of a Larger Crackdown
This fallout is the latest flashpoint in a broader conflict between major pharmaceutical companies and telehealth providers/compounding pharmacies over GLP-1 weight loss drugs. With the semaglutide shortage resolved, drugmakers like Novo Nordisk and Eli Lilly (maker of Zepbound, which uses a different GLP-1) are aggressively pursuing legal action against entities that continue to sell compounded versions of their medications.
Notably, Novo Nordisk’s termination of the Hims & Hers deal occurred less than a week after securing a significant court victory on June 17, solidifying the FDA’s removal of semaglutide from the drug shortage list and reinforcing Novo Nordisk’s exclusive right to mass-produce the drug. A compounding pharmacy trade group has filed an appeal against this ruling, indicating the legal battle is far from over.
As Novo Nordisk vows to continue taking action against illicit compounding and work only with telehealth companies that meet its safety standards, investors will be watching to see how the company expands its direct-to-consumer channels for Wegovy, especially as it competes in the weight loss market against Eli Lilly’s Mounjaro.
