Hims & Hers stock plummets after Novo Nordisk ends Wegovy direct sales deal

Hims & Herse (HIMS) stock, Novo Nordisk (NVO) blockbuster weight loss drug Wegovy, HIMS’in Telehealth platform to exist in a cooperation to ensure that it ended in a cooperation fell approximately 30% in early transactions.

Novo Nordisk said that Hims & Him has violated the law by continuing to sell the locking -lock component in Wegovy, as well as Novo’s branded drugs.

Novo said in a statement on Monday that “Hims & Hers … ‘Personality’ could not comply with the laws that prohibit the mass sales of compound drugs under false guise.

Last month, the duo announced a cooperation that will allow patients to buy Wegovy directly through the HIMS Telehealth Platform. The agreement followed an increasing tendency between Farma companies or a compound GLP-1s from the market to fill the access gap after the imitator, including Novo’s rival Eli Lilly (Lly).

Lilly and Novo had compound drugs in the weight loss market when they struggled to produce enough GLP-1s to meet the unexpected and unprecedented demand increase. Food and Drug Administration (FDA) allows the sale of imitators when a drug is insufficient without passing through the same trial requirements as a drug -branded drugs.

Since the famine ended for the drugs of both companies, some compound pharmacies continued to copy mostly for Novo’s Semagluid. They are planning to continue and patients are allowed to do so because of a gap that allows them to access the “personalized” drug if they need to adjust to a branded product. For reasons such as tolerable or allergy.

Lilly is also facing how to manage some Telehealth platforms that continue to offer compound products, including Novo Nordiskis involved in Lilly’s concerns.

HIMS & HERS did not respond immediately to the request for comments.

In addition to DING, investors expect HIMS & HERS to grow in a slower clip than the recent past.

Since HIMS is especially related to the presence of imitator drugs, it continues to the highest levels (and sometimes volatile fluctuations) in GLP-1 News. However, according to Bank of America analyst Allen Lutz, the Telehealth platform is weak in general subscriptions.

The increase in income slowed down from year to year, in the third quarter of 2024, from 45% to 29% in the first quarter of this year. In addition, the Federal Trade Commission (FTC) will implement a new rule in July, facilitating customers’ subscriptions with a single click, which can affect the “subscription cancellation by simplifying the cancellation of the subscription.”