Pharmaceutical Rift: Novo Nordisk and Hims & Hers Clash Over Weight-Loss Drug

Novo Nordisk has terminated its short-lived collaboration with telehealth company Hims & Hers, a decision that led to a more than 30% drop in the U.S. firm's shares. The split occurred amidst conflict over Hims' marketing strategies and its continued sales of Wegovy copies, despite a U.S. judge's support for the FDA's removal of semaglutide from the drug shortage list.

Semaglutide, the active ingredient in Wegovy, as well as Novo's other products like Ozempic, has seen a significant rise in demand as a weight-loss drug, leading to shortages. Hims leveraged this demand by providing cheaper compounds, but the FDA recently set a deadline in May to cease these sales unless absolutely necessary.

Novo Nordisk maintains other partnerships with telehealth rivals such as LifeMD and Ro, which have not been impacted by this change. Hims' continued distribution of compounded semaglutide and its conflict with Novo may threaten its long-term business credibility and undermine its ambitious revenue goals.

(With inputs from agencies.)