Hims CEO Slams Novo Nordisk For 'Anticompetitive Demands' After Ozempic Maker Abruptly Ends Partnership: 'We Refuse To Be Strong-Armed'

Hims & Hers Health Inc. HIMS, CEO Andrew Dudum, has accused Novo Nordisk of exerting anticompetitive pressure to prioritize its weight-loss drug Wegovy over patient needs after the abrupt termination of its partnership with a pharmaceutical giant.

Check out the current price of HIMS stock here.

What Happened: In an X post on late Monday, Dudum accused Novo Nordisk of misleading the public and attempting to control clinical standards at Hims & Hers.

"In recent weeks, Novo Nordisk's commercial team increasingly pressured us to steer patients to Wegovy regardless of whether it was clinically best for patients," Dudum wrote.

"We refuse to be strong-armed by any pharmaceutical company's anticompetitive demands that infringe on the independent decision-making of providers and limit patient choice."

He reaffirmed that "We will continue to offer access to a range of treatments, including Wegovy, to ensure providers can serve the individual needs of patients."

This comes despite Novo Nordisk’s announcement on Monday, stating that it would end its collaboration with Hims & Hers, citing the telehealth company's alleged violation of laws prohibiting mass sales of compounded drugs under the guise of “personalization” and deceptive marketing practices that compromise patient safety.

Why It Matters: In a press release on Monday, Dave Moore, executive vice president of Novo Nordisk's U.S. operations, stated, "When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy."

The termination cuts off Hims & Hers' direct access to Wegovy through the NovoCare Pharmacy, a move that sent shockwaves through the market.

However, Dudum, in his post, confirmed that Hims & Hers would continue to offer Wegovy.

HIMS slipped 34.63% on Monday after Novo Nordisk’s press release. It has risen 66.59% on a year-to-date basis and 89.53% over a year.

About 19 analysts tracked by Benzinga, covering HIMS, have a consensus target price of $30.44 apiece, with a ‘hold’ rating.

The targets range from $10 to $68, and the recent ratings by Morgan Stanley, Needham, and Piper Sandler imply a 9.97% upside for the stock.

Benzinga Edge Stock Rankings shows that HIMDS had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid; however, its value ranking was poor at the 8.54th percentile. The details of other metrics are available here.

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Monday. The SPY was up 0.99% to $600.15, while the QQQ rose 1.03% to $531.65, according to Benzinga Pro data.