Hims & Hers Health (NYSE: HIMS) stock has plunged sharply after Novo Nordisk (NYSE: NVO) announced it was severing ties with the telehealth firm over concerns about the distribution of its weight loss drug, Wegovy.
In pre-market trading on Monday, HIMS shares tumbled 20.66% to $50.59, wiping out recent gains. The share had closed the Friday session at $64.22, up 5.16%, and has rallied 154% year-to-date.
The sell-off appears to be a direct investor reaction to Novo Nordisk’s decision to discontinue supplying Hims & Hers with direct access to Wegovy through its NovoCare Pharmacy.
The termination followed accusations that Hims & Hers violated laws prohibiting mass sales of compounded drugs and engaged in misleading marketing practices.
The collaboration, launched in April, aimed to broaden access to Wegovy via a bundled $599 monthly subscription that included 24/7 care and nutritional support.
Impact of knock-off drugs
Novo Nordisk also raised concerns that Hims & Hers may have sourced semaglutide, the active ingredient in Wegovy, from unauthorized manufacturers, including unapproved suppliers in China.
“Novo Nordisk is firm on our position and protecting patients living with obesity. <…> When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy,” said Dave Moore, Executive Vice President of U.S. Operations at Novo Nordisk.
The abrupt end to the partnership represents a significant setback for Hims & Hers, which had been enjoying a strong performance in 2025.
Adding to the pressure, Bank of America reiterated its ‘Underperform’ rating on HIMS with a $28 price target on Monday.
Analyst Allen Lutz noted that core revenue growth has slowed sharply, from about 45% in Q3 2024 to 29% in Q1 2025, despite the tailwind from longer-duration subscriptions.
He warned that this boost will likely fade by late 2025 or early 2026, with core growth expected to slow to the mid-teens.
Featured image via Shutterstock
