Hims & Hers Health Stock Drops 3.59% Amidst Controversy and 20th Ranked Trading Volume

On June 25, 2025, Hims & Hers Health (HIMS) experienced a 3.59% decline in its stock price, with a trading volume of 27.18 billion, ranking 20th in the day's market activity.

Hims & Hers Health recently faced a significant setback with the termination of its partnership with Novo Nordisk. The collaboration, which focused on compounded GLP-1s, ended abruptly after less than two months. Novo Nordisk cited "deceptive marketing" practices by Hims & Hers as the reason for the split. This development has raised questions about Hims & Hers' future partnerships with other pharmaceutical giants.

Novo Nordisk's decision to end the partnership was driven by concerns over Hims & Hers' use of compounded semaglutide, which are generic versions of Wegovy. Novo Nordisk accused Hims & Hers of violating the law by mass-selling compounded drugs under the guise of "personalized" treatments, thereby putting patient safety at risk. Hims & Hers, however, maintains that it has the right to produce these medications for patients who cannot use branded drugs due to allergy or tolerance issues.

The dispute has highlighted the regulatory challenges faced by Hims & Hers in its reliance on compounded medications. The U.S. Food and Drug Administration (FDA) initially allowed compounded products to be marketed due to supply shortages, but recent regulatory changes have classified these formulations as illegal. This shift has put Hims & Hers' growth strategy under scrutiny, as compounded medications accounted for 15% of its revenue last year.

Despite the setback, Hims & Hers has expressed its commitment to continuing the sale of generic drugs. The company's chief executive stated that Novo Nordisk was aware from the outset that Hims & Hers would continue to sell compounded semaglutide. This stance has led to speculation about the company's future direction, with some analysts suggesting that Hims & Hers may need to pivot towards branded pharmaceutical collaborations to ensure long-term growth.

The future of Hims & Hers' growth is uncertain amidst this dispute. The company's reliance on compounded medications has been a key part of its growth narrative, but the regulatory challenges and the recent partnership termination have raised questions about its sustainability. Hims & Hers will need to navigate these challenges carefully to maintain investor confidence and secure future partnerships.