Novo Nordisk Announces End of Partnership with Hims & Hers, HIMS Stock Plunges 20%

This morning on my way to work, I saw the news that pharmaceutical company Novo Nordisk announced it will end its collaboration with telemedicine provider Hims & Hers.

Novo Nordisk decided to stop directly selling Wegovy, an obesity treatment drug approved in the U.S., through Hims & Hers.

The two companies had expanded their cooperation in April, aiming to provide obesity medication and medical support at affordable prices.

However, Novo Nordisk broke ties after judging that Hims & Hers violated rules by reproducing the drug or selling it in atypical large quantities.

Novo Nordisk also claimed that Hims & Hers engaged in deceptive marketing that threatened patient safety.

In particular, there was concern over the distribution of counterfeit drugs containing Chinese ingredients not approved by the FDA, which could seriously harm health.

Originally, the partnership offered a service costing $599 per month, including medication, 24-hour consultations, and nutritional counseling.

Following the announcement, HIMS' stock plunged 20% in a single day, causing strong investor reactions.

Simply put, the FDA in the U.S. is like Korea’s Ministry of Food and Drug Safety, guaranteeing that only verified drugs are safe.

This implies that patient safety and effective treatment are more important than just selling medicine.

Experts see this partnership termination as potentially raising trust issues in the telehealth market.

Especially as the obesity treatment market is rapidly growing, this issue may cause investor anxiety.

While HIMS shares fell sharply, Novo Nordisk’s stock was relatively less affected by the news.

Additionally, with the expansion of telemedicine services, regulatory issues and safety management are expected to become even more prominent in the future.

Personally, I realized once again how crucial it is to balance laws and regulations in the convergence of new technologies like telemedicine and the healthcare industry.

From an investor’s perspective, it’s essential not only to look at good services or growth potential but also to consider such legal risks together.