Company Performance & Core Business - Hims & Hers stock experienced a 30% crash following accusations of deceptive marketing by Novo Nordisk [1] - The company's core business has been heavily reliant on erectile dysfunction and baldness drugs [3][4] - Weight loss drugs, specifically compounded medications, now constitute over 50% of Hims & Hers' business [6] - The core business, excluding weight loss drugs, is reportedly declining or decelerating [7] Regulatory & Competitive Risks - Hims & Hers is operating in a "gray area" by compounding patented weight loss drugs, leading to concerns from Novo Nordisk [6] - The company's reliance on compounded weight loss drugs poses a significant risk if regulatory changes occur [6] - Alternative options for obtaining ED drugs exist, potentially undercutting Hims & Hers' market share [5] Market Sentiment & Investor Perspective - The stock was previously flagged as a "smug and senseless" investment, driven by speculative buying [3] - The stock had doubled since May 2024, but the underlying risks remain unchanged [3] - The negative news from Novo Nordisk came as an "out of left field surprise," even after a recent collaborative deal [8]