Novo Nordisk has officially ended its collaboration with the telehealth provider Hims & Hers over issues related to the marketing and sale of compounded versions of the weight-loss drug Wegovy. The termination follows concerns raised by Novo Nordisk that Hims & Hers continued promoting unauthorized alternatives to Wegovy, despite regulatory changes stemming from the resolution of a prior shortage of the drug.
In April, Novo Nordisk announced partnerships with multiple telehealth platforms, including Hims & Hers, to increase the availability of Wegovy in the U.S. after supply constraints had eased. However, the agreement with Hims & Hers was dissolved after Novo Nordisk alleged that the company failed to comply with legal standards that prohibit the mass sale of compounded drugs when a medication is no longer in short supply.
According to Novo Nordisk, Hims & Hers continued to market compounded semaglutide — the active ingredient in Wegovy — under what it called the “false guise” of personalized treatment, raising patient safety issues. In a statement, the drugmaker said the company “failed to adhere to the law which prohibits mass sales of compounded drugs” and accused it of using “deceptive” marketing practices.
Dave Moore, executive vice president of U.S. operations at Novo Nordisk, stated: “We’ve been firm all along that patient safety is our primary focus.” He also noted that the partnership was established via a third party, so there would be no termination costs for Novo Nordisk.
Moore explained that expectations for a gradual transition from compounded drugs to FDA-approved treatments were not met. He added that several mass compounding pharmacies had already either scaled back or halted production and distribution of semaglutide knock-offs. The company, he said, plans to continue working with regulatory bodies, including the FDA, to address unlawful compounding activity.
The dispute arises after the U.S. Food and Drug Administration officially removed semaglutide from its shortage list, a move that restricted compounding pharmacies from producing versions of the drug beyond specific, individualized cases. Hims & Hers had previously stated it would maintain its offering of personalized semaglutide formulations starting at $165 per month, citing the need for individualized dosages for some patients.
Hims & Hers did not provide immediate comment in response to the termination. During a May earnings call, CEO Andrew Dudum emphasized the company’s stance on treatment autonomy, stating that treatment decisions remain at the discretion of patients and their providers.
A report released by Novo Nordisk also pointed to concerns about the origins of the active ingredients used in the compounded alternatives. According to the company, its investigation revealed that some semaglutide suppliers were located in China, with many either not inspected by the FDA or having received citations for quality assurance issues. Moore said that medications sourced from such suppliers “are not even approved in those countries where they originated.”
In response to the terminated agreement, shares of Hims & Hers fell by approximately 28%, while Novo Nordisk’s stock dropped by over 6%.
Novo Nordisk confirmed it would continue offering branded Wegovy through selected telehealth providers that “align with its focus on delivering safe, effective treatment for chronic diseases”.
