On June 23, 2025, Hims & Hers Health (NASDAQ: HIMS) saw a 35% drop in its stock price following the termination of its partnership with Novo Nordisk, which had been initiated in April 2025. The abrupt cancellation raises concerns about HIMS’s potential in the weight-loss medication market, particularly after experiencing a 150% stock surge earlier this year due to investor optimism.
The partnership provided HIMS with access to Wegovy, Novo Nordisk’s leading weight-loss drug. However, it ended over allegations of “illegal mass compounding” and deceptive marketing by HIMS, specifically regarding its sale of compounded versions of the drug’s active ingredient, semaglutide. With the loss of this collaboration, there are fears that HIMS’s stock could decline further, potentially dropping to around $25, a 40% decrease from current levels.
Moving forward, HIMS will continue to offer personalized obesity treatments, but faces significant regulatory challenges, particularly from the FDA. The loss of direct sales from Wegovy significantly impacts HIMS’s revenue potential, indicating that the company’s existing business model may struggle to sustain growth without Novo Nordisk’s partnership.
