Novo Nordisk Ends Alliance with Hims & Hers Over Controversial Wegovy Sales

Novo Nordisk has called off its short-lived agreement with Hims & Hers Health to sell its high-profile Wegovy weight-loss drug. This decision, announced on Monday, resulted in a steep 30% decline in the telehealth company's shares. The companies initially partnered in April, but tensions have since escalated.

The Danish pharmaceutical giant cited concerns over Hims' marketing approaches and the ongoing sale of Wegovy replicas. This follows a U.S. judge's decision to uphold the FDA ruling to delist semaglutide, Wegovy's active component, from the drug shortage list. In response, Hims & Hers CEO Andrew Dudum criticized Novo, accusing it of attempting to monopolize clinical standards.

Despite the fallout, Hims continues to provide "personalized" doses of semaglutide. The FDA's previous allowance for compounded drugs during shortages has expired, complicating the legal landscape. Analysts predict the end of this collaboration could damage Hims' credibility and financial projections, while Novo remains committed to its partnerships with other telehealth companies.

(With inputs from agencies.)