Core Viewpoint - Novo Nordisk terminated its collaboration with Hims & Hers due to legal and safety concerns regarding the marketing and sale of compounded drugs, particularly Wegovy [4][5]. Group 1: Termination of Collaboration - Novo Nordisk announced the end of its partnership with Hims & Hers, stating that the latter failed to comply with legal standards and engaged in deceptive marketing practices [4][5]. - The collaboration was short-lived, lasting just over a month, and was marked by public disputes over marketing strategies [5][10]. Group 2: Impact on Hims & Hers - Following the announcement, Hims & Hers' stock plummeted nearly 35%, indicating significant investor concern over the loss of access to Wegovy [8][10]. - Hims & Hers had previously identified achieving a leadership position in the weight-loss market as a top priority, with the integration of Wegovy through NovoCare being a key strategy [9]. - The company will now only be able to offer a personalized compounded version of Wegovy, which limits its ability to provide this popular weight-loss drug [10]. Group 3: Impact on Novo Nordisk - Novo Nordisk's share price fell approximately 5% following the termination of the deal, reflecting a more muted impact compared to Hims & Hers [11]. - The company plans to continue working with other telehealth platforms to provide access to Wegovy while ensuring patient safety [12].

Core Insights - Hims & Hers Health experienced a 35% stock crash following the termination of its partnership with Novo Nordisk, raising concerns about its long-term viability in the weight-loss drug market [2][3][11] - The partnership, which began in April 2025, was expected to provide access to Novo Nordisk's Wegovy, significantly contributing to HIMS's stock surge of 150% earlier in the year [3][4] Partnership Details - The collaboration was short-lived, lasting only two months, as Novo Nordisk cited HIMS's "illegal mass compounding and deceptive marketing" practices as reasons for the termination [4][5] - HIMS's continued sales of personalized compounded versions of semaglutide conflicted with the partnership's goals, leading to a fundamental tension in the weight-loss drug market [5][6] Valuation and Market Reaction - Following the stock crash, HIMS trades at approximately seven times trailing revenues, more than double its five-year historical average of three times revenues [7][8] - If HIMS were to revert to its historical valuation multiple, the stock could fall to around $25, indicating a potential further decline of 40% from current levels [8] Future Outlook - HIMS can continue selling personalized obesity treatments, but faces regulatory uncertainties and the loss of a significant revenue stream from Wegovy [9][10] - The company's remaining business model may not generate sufficient growth to justify its current premium valuation, as the personalized approach is unlikely to match the scale of direct Wegovy sales [10][11] Investment Considerations - The situation represents a shift in the investment thesis, suggesting that investors should be cautious and avoid "buying the dip" due to the altered growth prospects and increased regulatory risks [11][12] - The market's reaction indicates that the loss of a primary growth catalyst can lead to significant declines, and future growth pathways for HIMS are uncertain and likely less lucrative [12]

Core Viewpoint - DJS Law Group is investigating Hims & Hers Health, Inc. for potential violations of securities laws following a significant drop in share price due to allegations of illegal practices and misleading marketing [1][2]. Investigation Details - The investigation centers on whether Hims & Hers made misleading statements or failed to disclose critical information to investors [2]. - Novo Nordisk announced the termination of its collaboration with Hims & Hers due to concerns over illegal mass compounding and deceptive marketing practices [2]. - Following the announcement, Hims & Hers shares fell by 31.7% during afternoon trading on June 23, 2025 [2]. Company Background - Hims & Hers Health, Inc. operates in the telehealth sector, focusing on personalized health solutions [2]. - The company has faced scrutiny for its marketing practices and compliance with regulations regarding compounded drugs [2]. Legal Context - DJS Law Group specializes in securities class actions and corporate governance litigation, representing large hedge funds and asset managers [4]. - The firm aims to enhance investor returns through advocacy and legal action [4].

Company Overview - Hims & Hers Health, Inc. is a telehealth company that provides prescription medications, over-the-counter medications, and personal care products [3]. Recent Developments - On June 23, 2025, Novo Nordisk A/S announced the termination of its collaboration with Hims & Hers due to concerns regarding illegal mass compounding and deceptive marketing practices [3]. - Following this announcement, Hims & Hers' stock price experienced a significant decline of over 34% [3]. Legal Investigation - Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving Hims & Hers, focusing on whether the company and its executives made false or misleading statements or failed to disclose material information to investors [1].

Market Reaction - Hims & Hers Health shares experienced a significant drop of nearly 35% [1] Partnership Termination - Novo Nordisk is withdrawing from its partnership with Hims & Hers Health [1] Reason for Termination - Novo Nordisk cited "illegal" and "deceptive" practices as the reason for ending the partnership [1]

SAN FRANCISCO, June 23, 2025 (GLOBE NEWSWIRE) -- On June 23, 2025 investors in Hims & Hers Health, Inc. (NYSE: HIMS) saw the price of their shares crash over 30% after Novo Nordisk announced that it terminated its collaboration with the telehealth company due to concerns about Hims & Hers’ sales and “deceptive” marketing of the weight loss drug Wegovy®. This news has prompted national shareholders rights firm Hagens Berman to open an investigation into possible violations of the securities laws. The firm ur ...

Core Viewpoint - Hims & Hers Health has experienced significant growth but faced a major setback due to the termination of its partnership with Novo Nordisk, impacting its stock performance [1][2][3] Company Overview - Hims & Hers Health has established a direct-to-consumer health platform focusing on hair loss, mental health, and weight loss, achieving strong revenue growth and stock returns [1] - The company has seen its stock price increase over 150% on two occasions in early 2025, but it recently dropped over 30% following the partnership news [1][2] Financial Performance - Hims & Hers Health is projected to grow earnings at 36.5% annually over the next three to five years, with sales expected to rise by 58.5% this year and 22.6% next year [5] - Current Zacks Consensus Estimates indicate revenues of $2.34 billion for the current year and $2.87 billion for the next year, reflecting year-over-year growth of 58.48% and 22.63% respectively [7] - The company trades at a premium valuation of 41x next year's earnings, which is considered reasonable given its growth forecasts [5] Market Landscape - The GLP-1 weight loss treatment market is projected to exceed $150 billion by 2035, indicating substantial long-term growth potential despite the recent partnership loss [10] - Novo Nordisk and Eli Lilly, major players in the GLP-1 market, have faced challenges, with Novo Nordisk's shares down over 50% from their 2024 highs [9] Strategic Considerations - The termination of the partnership with Novo Nordisk raises concerns, but Hims & Hers Health remains a fast-growing company in a compelling industry [3][10] - Investors may consider applying a three-day rule to mitigate risks associated with the recent volatility before making investment decisions [11]

Novo Nordisk A/S (NYSE:NVO) stock is down 5.3% to trade at $69.90 at last check, after the drugmaker's obesity drug CagriSema showed no clear advantage over Eli Lilly's (LLY) Zepbound. The company also noted it ended its partnership with Hims and Hers Health (NYSE:HIMS), which granted the latter direct access to its weight loss drug Wegovy via NovoCare Pharmacy.NVO is on track for its sixth-straight daily loss and pacing for its worst day since April 17. The shares are also now testing a familiar floor at t ...

BOSTON, June 23, 2025 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Hims & Hers Health, Inc. (NYSE: HIMS) for potential securities law violations. Investors who have lost money in their Hims & Hers Health, Inc. investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/hims. What is this all about? Shares of Hims & Hers Health fell over 25% on June 23 after Novo Nordisk announced it was terminating its partnership ...

Core Insights - Novo Nordisk is terminating its collaboration with Hims & Hers due to concerns over the telehealth company's promotion of cheaper knock-offs of the weight loss drug Wegovy, leading to a 20% drop in Hims & Hers shares in premarket trading [1][4] Group 1: Company Actions - Novo Nordisk had previously partnered with telehealth companies, including Hims & Hers, to expand access to Wegovy after the drug was no longer in short supply in the U.S. [2] - The company accused Hims & Hers of failing to comply with legal restrictions on the mass sale of compounded drugs, which are only allowed under specific circumstances [4] Group 2: Market Impact - The termination of the partnership has resulted in a significant decline in Hims & Hers stock, reflecting investor concerns about the company's future prospects following the news [1]