Hims & Hers Health Shares Drop 2.36% on 24.26% Volume Decline Ranking 106th as FTC Probes and Novo Partnership Collapse Weigh

On August 15, 2025, Hims & Hers Health (HIMS) closed with a 2.36% decline, trading on a volume of $0.84 billion, a 24.26% drop from the previous day, ranking it 106th in volume among listed stocks. The downward pressure coincided with renewed scrutiny over regulatory and operational risks.

The Federal Trade Commission is investigating Hims for potential violations of consumer protection laws, including allegations that its subscription cancellation process is overly burdensome. This follows a separate probe into the company’s advertising practices. The investigation, ongoing for over a year, has raised investor concerns about compliance risks and reputational damage.

Compounding the challenges, Hims’ collaboration with Novo Nordisk—a partnership aimed at expanding access to Wegovy, an FDA-approved GLP-1 weight-loss drug—was abruptly terminated in June 2025. Novo Nordisk cited Hims’ “deceptive promotion” of unauthorized drug versions as the reason, a move that triggered a securities class action lawsuit. The termination also led to a 34% single-day stock plunge in June, with Q2 2025 revenue from compounded GLP-1 drugs falling to $190 million, a 7% sequential decline.

Hims acknowledged a shift in its business model post-FDA restrictions on mass compounding of weight-loss drugs, pivoting to smaller-dose personalized formulations. However, this strategy has faced regulatory pushback, with Novo Nordisk characterizing Hims’ practices as “illegal.” The company reported a $74 average revenue per subscriber in Q2 2025, down from $84, attributed to subscriber attrition.

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