Novo Nordisk Terminates Weight-Loss Drug Partnership with Hims&Hers – NVO Drops 7%, HIMS Plummets 25%

TradingKey - Just two months into their weight-loss drug partnership, Novo Nordisk (NVO) announced on Monday, June 23, that it is terminating its collaboration with telehealth company Hims&Hers (HIMS). The move sent shockwaves through the market, with shares of the so-called "AI + healthcare" growth stock plummeting over 25% in premarket trading.

In a Monday announcement, the Danish pharmaceutical giant said it has halted its partnership with Hims&Hers — including the supply of its flagship obesity drug Wegovy — citing concerns over the marketing and distribution of compounded medications.

Novo Nordisk accused Hims&Hers of engaging in fraudulent marketing practices that jeopardize patient safety and violate regulations prohibiting the mass distribution of compounded drugs.

Before Monday U.S. market opened, Novo Nordisk (NVO) fell around 7% and Hims&Hers (HIMS) tumbled roughly 25%.

The two companies had entered a weight-loss drug supply agreement in April 2025, as Novo Nordisk sought to boost its U.S. market presence amid rising competition from Eli Lilly. Meanwhile, Hims&Hers aimed to address drug shortages and strengthen its position in the booming telemedicine sector by leveraging Novo’s brand-name medications.

However, the short-lived partnership has now collapsed due to regulatory concerns — raising broader questions about compliance within the telehealth industry, particularly when combined with AI-driven platforms.