On Monday, Novo Nordisk announced that it shall end its partnership with Hims & Hers. The reason given by Novo Nordisk, the Danish pharmaceutical giant for ending the deal is because Hims was selling and promoting a cheaper copycat of Novo’s blockbuster weight loss drug, Wegovy. Novo Nordisk drops Hims as it has concerns about the telehealth company’s sales and promotion of cheaper knock-offs of the weight loss drug Wegovy.
Novo Nordisk stops Hims
As Novo Nordisk had ample supply of the Wegovy it has offered several telehealth companies such as Hims & Hers to expand access to the blockbuster injection.
What this means is with no shortage of Wegovy compounding pharmacies were legally restricted from making and selling cheaper, unapproved versions of the drug by May 22.
Hims & Hers’s contract ends
According to Novo Nordisk, Hims & Hers has “failed to adhere to the law which prohibits mass sales of compounded drugs” under the “false guise” of personalization. Novo Nordisk accused Hims & Hers of “deceptive” marketing and putting patient safety at risk.
In a statement on X, Hims & Hers CEO Andrew Dudum described the breakup, “disappointed to see Novo Nordisk management misleading the public.”
He said Hims & Hers will continue to offer several treatments, including Wegovy, to allow providers to meet the individual needs of patients.
When can pharmacists legally make compounded versions
When shortages are declared by Food and Drug Administration, pharmacists can legally make compounded versions of brand-name medications. They can also be produced on a case-by-case basis when it’s medically necessary for a patient, such as when they can’t swallow a pill or are allergic to a specific ingredient in a branded drug.
But drugmakers and some health experts have pushed back against the practice, largely because the FDA does not approve compounded drugs.
Novo Nordisk’s efforts to stop knock-offs
Novo Nordisk said it will continue offering the branded version of Wegovy through telehealth organizations that “share our commitment to safe and effective medical treatment for patients living with chronic diseases.”
Dave Moore, Novo Nordisk’s executive vice president of U.S. operations, said that the company will “engage on the legal front” and with the FDA to ensure that illegal compounding diminishes.
In a release on Monday, Novo Nordisk drops Hims after it conducted an investigation that found the active ingredients used in Wegovy knock-offs sold by telehealth companies and compounded pharmacies are manufactured by foreign suppliers in China. The drugmaker also cited a report from the Brookings Institution in April, which found that a large share of those Chinese suppliers were never inspected by the FDA, and many that were inspected had drug quality assurance violations.
Hims using Chinese manufacturers
Novo drops Hims as it found during investigation that, telehealth companies that compound semaglutide drugs use ingredients “manufactured by foreign suppliers in China.”
Novo said that Hims would no longer have direct access to Wegovy.
In a statement on X on Monday, Hims’ CEO Andrew Dudum said Novo was being anti-competitive and that Hims will continue to provide a range of treatments, including Wegovy.
The company was allowed to make legal copies of Novo’s weight loss and diabetes drugs Ozempic and Wegovy during a shortage that began in 2022. In February, the US Food and Drug Administration removed semaglutide injection products from its shortage list and gave compounders 60-90 days to stop making copies.
Stock update
Hims hers stock plunge closing at 34% lower on Monday, while Novo Nordisk’s stock closed more than 5% lower.
Hims’ stock has been on a roller coaster this year, with shares dropping and jumping sharply on new developments in the weight loss drug industry.
At the end of April, Hims stock surged 20% after Novo announced a long-term collaboration with Hims to make obesity treatments accessible on the Hims platform.
The announcement came just months after Hims’ CEO said that the company would no longer sell compounded versions of Novo’s weight loss drugs. Instead, it would sell “personalized” dosages of Wegovy under rules allowing it for clinical reasons such as decreased side effects. The company’s stock fell over 19% following Dudum’s remarks on Novo.
Hims had a good year so far and is up 74%. Novo is down 19% this year, this is as the company worries that it is rapidly losing market share to American pharmaceutical rival Eli Lilly.
Hims and Novo did not immediately respond to a request for comment.
