Novo Nordisk ends deal with Hims & Hers over sales of Wegovy copycats; HIMS drops 20%

Novo Nordisk connected Monday said it is ending its collaboration with Hims & Hers owed to concerns astir the telehealth company's income and promotion of cheaper knock-offs of the value nonaccomplishment cause Wegovy. 

Shares of Hims & Hers fell astir 20% successful premarket trading Monday. 

Novo Nordisk successful April said it would offer Wegovy through respective telehealth companies specified arsenic Hims & Hers to grow entree to the blockbuster injection now that it is no longer successful abbreviated supply successful the U.S. 

The extremity of the Wegovy shortage meant compounding pharmacies were legally restricted from making and selling cheaper, unapproved versions of the cause – with uncommon exceptions. Telehealth companies person said patients whitethorn inactive request personalized compounded versions of Wegovy successful situations wherever it's medically necessary.

But Novo Nordisk connected Monday said Hims & Hers has "failed to adhere to the instrumentality which prohibits wide income of compounded drugs" nether the "false guise" of personalization. The drugmaker besides accused Hims & Hers of "deceptive" selling that is putting diligent information astatine risk.

A Hims & Hers spokesperson did not instantly respond to CNBC's petition to comment.

During an net telephone successful May, Hims & Hers CEO Andrew Dudum said the institution gives providers and patients prime successful their treatments. 

"Ultimately what is close for them is their ain discretion," helium said. "I deliberation we powerfully judge it's truly important that we support that independence."

During Food and Drug Administration-declared shortages, pharmacists tin legally marque compounded versions of brand-name medications. They tin besides beryllium produced connected a case-by-case ground erstwhile it's medically indispensable for a patient, specified arsenic erstwhile they can't swallow a pill oregon are allergic to a circumstantial constituent successful a branded drug. 

But drugmakers and immoderate wellness experts person pushed backmost against the practice, mostly due to the fact that the FDA does not o.k. compounded drugs.

Novo Nordisk said it volition proceed offering the branded mentation of Wegovy done telehealth organizations that "share our committedness to harmless and effectual aesculapian attraction for patients surviving with chronic diseases."

In a merchandise connected Monday, Novo Nordisk said it conducted an probe that recovered the progressive ingredients utilized successful Wegovy knock-offs sold by telehealth companies and compounded pharmacies are manufactured by overseas suppliers successful China. The drugmaker besides cited a study from the Brookings Institution successful April, which recovered that a ample stock of those Chinese suppliers were ne'er inspected by the FDA, and galore that were inspected had cause prime assurance violations.