Hims & Hers Health Halts Wegovy-Style Pill; Shares Plunge 23.6%
Shares of Hims & Hers Health plunged 23.6% after the telehealth company discontinued its compounding of a Wegovy-like weight-loss drug. The U.S. Department of Health and Human Services referred the company to the Department of Justice for potential Federal Food, Drug, and Cosmetic Act violations and Novo Nordisk filed a patent-infringement lawsuit.
1. Regulatory Action and DOJ Referral
Hims & Hers Health halted its compounding and sale of a semaglutide-based weight-loss pill after the Department of Health and Human Services flagged potential violations of the Federal Food, Drug, and Cosmetic Act and referred the case to the Department of Justice for investigation.
2. Novo Nordisk Patent Lawsuit
Novo Nordisk filed a patent-infringement lawsuit against Hims & Hers, alleging that the telehealth provider’s compounding operations created unsafe, unauthorized versions of the maker’s Wegovy drug and engaged in deceptive marketing practices.
3. Market Reaction and Volatility
The stock price sank 23.6% in one session, marking one of Hims & Hers Health’s largest single-day losses, and underscoring heightened volatility as shares trade more than 70% below their 52-week high following growth slowdown concerns.