Why Hims & Hers Health Stock Is Crashing Today

Shares of Hims & Hers Health (NYSE: HIMS) are imploding on Monday, down 32% as of 3:03 p.m. ET. The drop comes as the S&P 500 rose 0.8% and the Nasdaq Composite rose 0.7%.

Novo Nordisk announced it will cut ties with Hims & Hers, saying the telehealth provider can no longer sell compounded versions of its blockbuster GLP-1 weight loss drug Wegovy.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Hims & Hers loses a major partnership

Novo Nordisk announced this morning that it is ending a partnership with Hims & Hers that allowed the telehealth provider to sell Novo's blockbuster weight-loss drug, Wegovy.

According to Novo Nordisk, Hims & Hers "failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of 'personalization.'" Hims & Hers offered compounded versions of Wegovy, claiming it offered medically necessary personalization for some patients. The compounded versions, according to Novo, were sourced out of China and the labs producing them failed to meet standards or be approved by U.S. regulators.

Image source: Getty Images.

In a statement on X, Hims & Hers CEO Andrew Dudum said the company is "disappointed to see Novo Nordisk management misleading the public" and that it would "not compromise the integrity of our platform to appease a third party."

Its valuation is steep

The loss of its ability to sell Wegovy is a significant hit to Hims & Hers' business. The massive drop today in its stock reflects this, but even after falling more than 30%, the stock is still too expensive for my taste.

Should you invest $1,000 in Hims & Hers Health right now?

Before you buy stock in Hims & Hers Health, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hims & Hers Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.