Novo Nordisk has terminated its partnership with telehealth company Hims & Hers, citing serious concerns over the company’s promotion and sale of compounded, unauthorised versions of the weight loss drug Wegovy.
The Danish pharmaceutical giant announced the decision on Monday, accusing Hims & Hers of violating U.S. drug laws by marketing and distributing mass-produced compounded versions of Wegovy under the “false guise” of medical personalization.
Novo Nordisk also alleged that Hims & Hers used deceptive marketing practices that could endanger patient safety.
“We expected that the efforts towards compounding personalization would diminish over time. When we didn’t see that, we had to make a choice on behalf of patients,” said Dave Moore, executive vice president of U.S. operations at Novo Nordisk. “We’ve been firm all along that patient safety is our primary focus.”
Shares of Hims & Hers plunged nearly 28% following the announcement, while Novo Nordisk stock dropped more than 6%.
Novo Nordisk had partnered with several telehealth platforms in April, including Hims & Hers, to expand access to Wegovy after resolving supply shortages in the U.S.
Under federal regulations, compounded versions of a drug can only be legally prepared in rare circumstances, such as during an FDA-declared shortage or for patients with specific medical needs. With the shortage lifted on May 22, those exceptions have narrowed significantly.
However, Novo Nordisk claims Hims & Hers continued to promote compounded Wegovy even after the shortage ended, a move the company says violates federal compounding laws.
Moore noted that the partnership, brokered through a third-party pharmacy provider, ended without financial penalty.
Hims & Hers did not immediately respond to requests for comment. In a May earnings call, CEO Andrew Dudum defended the company’s approach, saying treatment decisions should be left to patients and providers.
Citi analyst Daniel Grosslight warned the development substantially increases legal risks for Hims & Hers, adding that the original collaboration failed to address the compounding issue from the outset.
Novo Nordisk also revealed that an internal investigation found the active ingredients in many knock-off Wegovy versions were sourced from Chinese manufacturers, some of which have not been approved or inspected by the U.S. Food and Drug Administration.
The company referenced an April report from the Brookings Institution that flagged drug quality violations among several of these foreign suppliers.
“These medicines that are coming into our country from sources around the world are not even approved in those countries that they originated, and it’s a problem,” Moore said.
Novo Nordisk said it will continue working with telehealth partners who are committed to safe, FDA-approved treatment protocols and vowed to engage regulators to curb illegal compounding.
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