Novo Nordisk Drops 3.08% After Hims & Hers Termination

On June 25, 2025, Novo Nordisk's stock dropped by 3.08% in pre-market trading, reflecting investor concerns over recent developments in the company's business operations.

Novo Nordisk recently terminated its distribution agreement with Hims & Hers Health for the weight loss drug Wegovy, citing "deceptive marketing" practices. This decision has led to a significant drop in Hims' stock value, raising questions about the future of their partnership and the broader implications for the weight loss drug market.

Novo Nordisk's decision to terminate the agreement with Hims & Hers Health has highlighted the vulnerabilities in the weight loss drug market. The company's move to stop supplying Wegovy and publicly accuse Hims of illegal compounding practices has raised regulatory concerns, particularly as the FDA tightens controls on large-scale production of GLP-1 generic drugs. This has led to a significant drop in Hims' stock value, indicating that market sentiment is heavily influenced by Novo Nordisk's endorsement.

Despite the setback, Hims & Hers Health has announced a full-cash acquisition of the European telemedicine supplier Zava, which will provide the company with regulatory approval to operate in the UK, Germany, France, and Ireland. This acquisition is expected to boost Hims' revenue by 2026 and demonstrates the company's strong financial position, even after the stock drop. However, the regulatory path for compounded GLP-1 remains uncertain, and Hims may need to rely on branded GLP-1 drugs, which could impact their pricing advantage and profitability.

Novo Nordisk's decision to terminate the Wegovy agreement with Hims & Hers Health has also raised concerns about the future of the weight loss drug market. The company's move to stop supplying Wegovy and publicly accuse Hims of illegal compounding practices has raised regulatory concerns, particularly as the FDA tightens controls on large-scale production of GLP-1 generic drugs. This has led to a significant drop in Hims' stock value, indicating that market sentiment is heavily influenced by Novo Nordisk's endorsement.