Hims & Hers (Hims) shares fell about 30% in early trade on Monday after Novo Nordisk (NVO) announced that it ended the cooperation to make its weakening drug, Wegovy, available on the Hims Hims platform.
Novo Nordisk said Hims & Her violates the law by continuing to sell Copycat semaglutide, the key ingredient in Wegovy, along with Novo’s branded drugs.
“Hims & Hers … They failed to obey the law that prohibits the mass sales of complex drugs under the false cover of” Personalization, “Nova said in a statement on Monday.
Hims and hers refuse to respond to Yahoo Finance’s request for comment, but Executive Director Andrew Dudum posted a few hours later, claiming that Novo’s sales team was pressing him to “direct the patients to Wegovy”.
“We refuse to be highly armed by the anti -competitive demands of any pharmaceutical company to violate the independent decision -making of suppliers and limit the patient’s choice,” Dudum said in the publication.
The duet has announced a cooperation last month, which will allow patients to directly buy Wegovy through the Hims Tele leaf platform. The agreement followed a growing trend among pharmaceutical companies, including competitor of Novo Eli Lilly (Lly) to fill the difference in access after Copycat or complex, GLP-1S were expelled out of the market.
Mixed drugs were available when Lily and newly struggled to produce enough from their GLP-1 to meet the unexpected and unprecedented jump in the demand in the Weight Loss Market. The Food and Medicines Administration (FDA) allows you to sell copycats when the medicine is deficient without being subjected to the same test requirements as branded drugs.
As the shortage has also ended for the drugs of the two companies, some pharmacies continue to make Copycats – the most for the Novo semaglutide. They intend to continue and are allowed to do so because of a door that allows patients to have access to a “personalized” medicine if they need a branded product for reasons such as tolerance or allergies.
Lilly is also facing how to manage some telephone platforms that continue to offer sophisticated products, including Novo Nordisk’s, which Lily included in her concerns.
Hims & Hers did not immediately answer a request for comment.
In addition to the largest Ding to the company’s shares, investors expect Hims and hers to grow with a more slow video than in the recent past.
Hims has driven the maximum (and sometimes volatile swings) in GLP-1 news, especially in terms of Copycat drugs. But he also shows weakness in the common subscriptions to his telephoto platform, according to Bank of America analyst, Alan Lutz.