Novo Nordisk Terminates Partnership with HIMS & HERS Health
Novo Nordisk has pulled its partnership with HIMS & HERS Health due to claims that the telehealth company sold fake versions of the pharmaceutical company’s weight loss drug, Wegovy. The Danish drug maker said that Wegovy will no longer be available at HIMS & HERS and that it is ending the cooperation because the online health company based in San Francisco sold "illegitimate, knockoff versions of Wegovy, which endangered patient safety".
Background of the Partnership
The decision to dissolve the partnership came less than two months after the companies announced that they had entered a "long-term collaboration" to make obesity treatment more accessible. After Novo Nordisk’s announcement, HIMS & HERS’ stock plunged by more than $20 or around 31% to $44.10. HIMS & HERS did not immediately respond to a request for comment. The company had expected to earn more than $700 million from weight loss services this year, a goal that is now difficult to achieve without widespread sales.
Reasons for Terminating the Partnership
Novo Nordisk said it started investigating HIMS & HERS after a nationwide shortage of the telemedicine company’s medication. When Novo Nordisk offered the medication through more retailers, it said that it wanted to transition patients from using "unapproved, tightened versions" of the medication into the FDA-approved Semaglutide medication. This followed a command from the FDA, which has tried to limit the sale of compounding pharmacies selling imitation medications, a step that is expected to increase prices.
FDA Approval and Safety Concerns
The FDA approved Wegovy for adults with obesity in March 2024 and added to a growing market with weight loss medication, which includes Ozempic and Mounjaro. The demand for GLP-1 drugs used to treat diabetes and weight loss has increased in recent years, with one in eight adults saying they have used the treatments. Novo Nordisk said an investigation by the company showed that the ingredients sold by telemedicine companies and compounding pharmacies are produced in foreign suppliers in China and that a large proportion of the medication was never inspected by the FDA. "US patients should not be exposed to unsafe and illegal foreign ingredients," said Novo Nordisk.
Future Plans
Novo Nordisk will continue to sell on other telehealth platforms that "share our commitment to patient safety," said Dave Moore, Executive Vice President at Novo Nordisk. Among the telehealth companies Novo Nordisk partners with are LifeMD and Ro. The company is committed to ensuring patient safety and will take all necessary steps to prevent the sale of fake or unapproved medications.
