Novo Nordisk Ends Collaboration with Hims & Hers Over Wegovy Distribution

Novo Nordisk announced it will stop collaborating with Hims & Hers Health regarding the distribution of Wegovy weight loss drugs. Initially planned as a bundled offering on Hims & Hers’ platform, questions concerning the personalized nature and legality of these offerings have arisen. Stock prices for both companies fell after the announcement.

On Monday, Novo Nordisk declared an end to its partnership with U.S.-based telehealth company Hims & Hers Health concerning the distribution of its blockbuster Wegovy weight loss drugs. The announcement follows a collaboration unveiled in April, where Hims & Hers planned to offer Wegovy alongside other services on its platform.

Hims & Hers had been selling what it termed 'personalized' doses of Wegovy at approximately $165 per month, citing clinical reasons including reduced side effects. Additionally, the company sells liraglutide, a Novo diabetes drug's generic counterpart causing weight loss, and is in an offering battle with Eli Lilly's Zepbound. This has drawn skepticism from Wall Street analysts questioning the 'personalized' label's legitimacy.

The decision to sever ties coincides with a U.S. federal judge's ruling that rejected compounding pharmacies' efforts to continue making copies of Wegovy and Ozempic, reinforcing the FDA's stance to remove semaglutide from the shortage list. Novo Nordisk is now directing efforts to ensure FDA-compliant versions of Wegovy reach select telehealth organizations. Following this news, Novo Nordisk's share price dropped 6.5%, and Hims & Hers saw a 22% decline in premarket trading.

(With inputs from agencies.)