Hims & Hers Tumbles 5.5% Amid Regulatory Firestorm as Trading Volume Dives 35% to 1.69 Billion

On August 1, 2025, Hims & Hers Health (HIMS) closed at a 5.49% decline, with a trading volume of $1.69 billion, marking a 35.37% drop from the prior day’s volume. The stock’s performance reflects mounting regulatory and legal challenges disrupting its business operations.

Key developments include Novo Nordisk’s abrupt termination of a collaboration with Hims in late June 2025, citing deceptive marketing practices and illegal compounding of Wegovy®. The Danish pharmaceutical giant accused Hims of violating U.S. regulations by mass-selling unauthorized versions of the GLP-1 drug under the guise of personalized prescriptions. This partnership collapse triggered securities lawsuits alleging misleading assurances to investors about regulatory compliance and revenue projections tied to the collaboration.

Compounding the pressure, over 80 bipartisan lawmakers urged the FDA in late July 2025 to crack down on counterfeit GLP-1 drugs, explicitly targeting Hims’ business model. The firm faces scrutiny for allegedly promoting unapproved weight-loss medications, raising safety concerns that align with the FDA’s regulatory focus. Legal investigations, led by Hagens Berman, are examining whether Hims concealed risks related to its GLP-1 strategy, potentially exposing patients to harm and undermining its commercial partnerships.

Backtest analysis of HIMS’ historical performance indicates a 52.19% win rate over three days following a -7% intraday decline, with a 55.89% probability of recovery within 30 days. The maximum observed return post such events was 16.84% over 30 days, suggesting potential short-term rebounds despite the current volatility.