Novo Nordisk ended its collaboration with Hims & Hers Health due to concerns for patient safety, negatively impacting the stock prices of both companies.
Circumstances of the Partnership Termination
The partnership between Novo Nordisk and Hims & Hers was announced in April 2025 and ended abruptly on June 23, 2025. Novo Nordisk cited 'illegal mass compounding' and 'deceptive marketing' practices as reasons for termination, highlighting ongoing sales of unauthorized Wegovy knockoffs.
Market Reaction to the Announcement
Following the termination announcement, Hims & Hers shares plummeted by 28.98%, closing at $45.61. Novo Nordisk's stock also fell by 5.16%, reaching $69.96. Trading volume for Hims exceeded 55 million shares, nearly doubling the average volume.
Details about the Partnership and its Consequences
The collaboration aimed to enhance access to obesity treatment. Hims & Hers offered Wegovy via its platform at $599 per month. However, Novo Nordisk expressed concerns over Hims & Hers using active ingredients from unapproved Chinese suppliers, exacerbating regulatory scrutiny. Analysts noted that the termination raises legal risks for Hims & Hers and questions the legitimacy of their operations.
The termination of the partnership between Novo Nordisk and Hims & Hers underscores the importance of compliance with pharmaceutical regulations, directly affecting company performance.
