Hims & Hers CEO Says 'No Way In Hell We're Gonna Cave On' Selling Compounded Obesity Drugs After Novo Nordisk Breakup
Synopsis
Truist warned that Hims faces renewed litigation risk after Novo's exit, which could create a prolonged legal overhang on the stock.
Hims & Hers Health will continue offering low-cost compounded weight-loss shots even after Novo Nordisk terminated their partnership over alleged “deceptive marketing,” CEO Andrew Dudum said in his first public comments since the split.
Shares of Hims closed up 2.3% at $42.95 on Tuesday, following a record 34% plunge in the previous session.
“There’s just no way in hell we’re going to cave on that, no matter who the pharma company is or what the partnership looks like,” Dudum told Bloomberg.
He dismissed Novo’s claims as “misleading,” adding the drugmaker was losing market share and pressuring Hims to steer patients toward its branded product Wegovy.
Novo said it ended the deal due to Hims' failure to stop mass sales of compounded versions of Wegovy, despite a prior agreement.
The split follows months of friction between the two companies.
Hims had offered Wegovy through a discounted partnership while also continuing to sell compounded GLP-1 alternatives to patients needing personalized doses, which Dudum insists is legal under FDA rules.
“We’ve aimed I think in all aspects to be extremely blue chip in the way we approach clinical safety and the regulatory approach,” he said.
Truist analyst Jailendra Singh maintained a ‘Hold’ rating on Hims with a $45 price target, warning that litigation risk is “back on the table” following Novo’s claims of illegal compounding and deceptive practices.
A legal dispute, if it emerges, could take up to 24 months and weigh on investor sentiment, Singh said in a note.
On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.
One user said the stock could reclaim the $60 level and hit new highs in the coming months.
Another user downplayed litigation concerns, noting that lawsuits can be filed for any reason and emphasizing Hims’ strong cash position, which could support a strong legal defense if needed.
Hims’ stock has risen 70.4% so far in 2025.
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