Overview

• Novo Nordisk alleged Hims & Hers breached drug compounding laws by continuing mass production of unapproved Wegovy formulations after FDA-declared GLP-1 shortages ended in February.
• Hims & Hers shares dropped about 20% in premarket trading on June 23 after the partnership termination announcement.
• The April deal was designed to channel branded Wegovy through Hims & Hers to help patients move from compounded versions once supplies stabilized.
• A Novo Nordisk investigation found the active ingredients in the compounded products were sourced from Chinese suppliers with limited or outdated FDA inspections.
• Eli Lilly has barred compounding of semaglutide and tirzepatide in its telehealth agreements to safeguard compliance and patient safety.