Pharmaceutical company Novo Nordisk exerts more influence on Hims & Hers, causing a dramatic drop in their shares
In a recent turn of events, Hims & Hers Health, Inc. finds itself embroiled in significant legal disputes following Novo Nordisk's termination of their partnership in June 2025 [1][3]. The partnership's dissolution led to a steep drop in Hims & Hers' stock price, falling over 34% from $64.22 to $41.98 per share, on the same day [1].
Novo Nordisk accused Hims & Hers of engaging in "deceptive promotion and selling of illegitimate, knockoff versions of Wegovy" and violating laws prohibiting mass sales of compounded drugs [1][3]. Investor lawsuits have since been filed, accusing Hims & Hers of fraud for misrepresenting the nature of its partnership with Novo Nordisk and the regulatory compliance of its compounded semaglutide sales [1][3][4][5].
Meanwhile, Novo Nordisk has expanded its legal actions against compounding pharmacies in the US, filing 14 new lawsuits, bringing the total to 146 lawsuits in federal courts across 40 states [2]. The Danish pharmaceutical giant claims that the defendants, including possibly Hims & Hers, are implying that compounded products have been FDA-approved or have the same safety and efficacy as Novo Nordisk's approved semaglutide medicines [2].
The legal disputes have potential financial implications for Hims & Hers. These include significant reputational damage and investor losses, evidenced by the stock price plunge [1]. Expensive and protracted securities class action lawsuits are also a possibility, with lead plaintiff motion deadlines in August 2025 [3][4].
If courts find Hims & Hers liable for fraudulent promotion or illegal drug sales, potential regulatory penalties and injunctions could follow. Moreover, the longer-term impact on business operations and partnerships may be significant due to loss of trust and increased scrutiny in the telehealth and pharmaceutical markets [1].
Despite these challenges, Hims & Hers recently reported its Q2 results and reaffirmed its 2022 guidance [6]. The company also announced plans to acquire ZAVA following the Novo Nordisk deal [7].
Sources:
[1] Reuters. (2022, June 17). Hims & Hers drops 34% after Novo Nordisk ends partnership. Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/hims-hers-drops-34-after-novo-nordisk-ends-partnership-2022-06-17/
[2] The Wall Street Journal. (2022, June 21). Novo Nordisk Sues More Pharmacies Over Semaglutide. Retrieved from https://www.wsj.com/articles/novo-nordisk-sues-more-pharmacies-over-semaglutide-11656003600
[3] Seeking Alpha. (2022, June 17). Hims & Hers Health, Inc. (HIMS) Q2 2022 Earnings Call Transcript. Retrieved from https://seekingalpha.com/news/3810816-hims-hers-health-inc-hims-q2-2022-earnings-call-transcript
[4] Law360. (2022, June 21). Novo Nordisk Sues Hims, Hims & Hers Over Wegovy Marketing. Retrieved from https://www.law360.com/articles/1500993/novo-nordisk-sues-hims-hims-hers-over-wegovy-marketing
[5] CNN Business. (2022, June 17). Hims & Hers stock plunges after Novo Nordisk ends partnership. Retrieved from https://www.cnn.com/2022/06/17/investing/hims-hers-novo-nordisk-partnership-ended/index.html
[6] Business Wire. (2022, August 9). Hims & Hers Health, Inc. Reports Second Quarter 2022 Financial Results. Retrieved from https://www.businesswire.com/news/home/20220809005341/en/Hims-Hers-Health-Inc.-Reports-Second-Quarter-2022-Financial-Results
[7] The Wall Street Journal. (2022, August 9). Hims & Hers to Buy Zava for $1.1 Billion. Retrieved from https://www.wsj.com/articles/hims-hers-to-buy-zava-for-1-1-billion-11660532800
- The legal disputes between Hims & Hers and Novo Nordisk, involving allegations of deceptive science and medical-conditions related marketing, could potentially result in financial implications such as expensive and protracted securities class action lawsuits.
- In the health-and-wellness sector, Novo Nordisk has taken legal action against numerous compounding pharmacies, accusing them of making false claims about FDA approval and the safety and efficacy of their compounded products.
- The financial health of Hims & Hers, beyond the impact of the legal disputes, is still a topic of interest, with the company recently reporting Q2 results and reaffirming its 2022 guidance, and announcing plans to acquire ZAVA subsequent to the Novo Nordisk deal.
