HIMS Shares Plummet After Novo Nordisk Accuses Hims & Hers of Illegal Practices
On Monday, the stock of Hims & Hers (HIMS) fell by almost 35%. The decline followed Novo Nordisk’s (NVO) announcement that it was terminating a partnership to offer its popular weight-loss medication, Wegovy, via Hims’ telemedicine platform. Novo Nordisk claimed that by continuing to offer imitation semaglutide, the main component of Wegovy, alongside Novo’s branded medications, Hims & Hers was in violation of the law.
Hims & Hers … has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization,’
Novo
Hims CEO Slams Novo Nordisk Over Anticompetitive Demands in Wegovy Fallout
A few hours later, CEO Andrew Dudum wrote on X that Novo was under pressure from its commercial staff to direct patients to Wegovy.
We refuse to be strong-armed by any pharmaceutical company’s anticompetitive demands that infringe on the independent decision making of providers and limit patient choice,
Dudum
Last month, the two announced a partnership that would enable Wegovy to be directly purchased by patients via Hims’ telehealth platform. Following the removal of compound, or copycat, GLP-1s from the market, Novo’s rival Eli Lilly (LLY) and other pharmaceutical companies entered into an agreement to close the access gap.
HIMS Stock Slips as Revenue Growth Drops and Telehealth Subscriptions Decline
Along with the most recent decline in the company’s shares, investors anticipate that Hims & Hers will grow more slowly than it has in the recent past. He has been enjoying the highs and lows of GLP-1 news, particularly in relation to the availability of imitation medications. However, Allen Lutz, an analyst at Bank of America, claims that it is also displaying weakness in terms of overall telehealth platform subscriptions.
From almost 45% in the third quarter of 2024 to 29% in the first quarter of this year, revenue growth has drastically reduced year over year. Furthermore, HIMS turnover may be affected by the Federal Trade Commission’s (FTC) new rule that will be implemented in July and make it simpler for customers to cancel subscriptions with a single click, according to Lutz.
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