Hims & Hers Stock Nosedives: The Real Reason Behind the Novo Nordisk Breakup!

Hims & Hers Health has found itself at the center of investor turmoil after its high-profile collaboration with Novo Nordisk on FDA-approved weight loss drug Wegovy abruptly ended. The Danish pharmaceutical titan terminated the pact, accusing Hims & Hers of misleading marketing practices and non-compliance with regulations governing compounded drugs—actions it deemed a threat to patient safety. Hims & Hers CEO Andrew Dudum fired back, insisting the company’s compounding approach is legal under FDA rules and accusing Novo Nordisk of leveraging its market dominance to pressure patients toward branded Wegovy. The fallout was immediate and severe: Hims & Hers stock plunged 20% on the news, then tumbled another 15% as traders digested the CEO’s combative response and analysts questioned the telehealth firm’s reliance on GLP-1 therapies. Meanwhile, Hims & Hers has countered that the sell-off overstates the risk—pointing to diversified revenue streams, a recent $1 billion convertible note raise, and strong recent earnings. As investors sift through the headlines and transcripts, four key factors emerge that drove the stock’s dramatic decline.