Hims & Hers Stock Plummets After Regulatory Crackdown on Wegovy Copycat
Hims & Hers Health faced immediate regulatory backlash after launching a $49 compounded version of Novo Nordisk's weight-loss drug Wegovy. The telehealth company withdrew the product within 48 hours as federal agencies escalated enforcement actions.
Shares of HIMS cratered 16% in after-hours trading, while Novo Nordisk's stock surged over 10% on the news. The FDA issued a stark warning against companies marketing unapproved copycat medications, emphasizing swift legal consequences for violations of drug approval protocols.
The Department of Health and Human Services referred the matter to the Justice Department, citing potential breaches of the Federal Food, Drug, and Cosmetic Act. Unlike Wegovy—which carries FDA approval—Hims' compounded alternative lacked regulatory review for safety or efficacy.
