Novo Nordisk Terminates Partnership with Hims, Citing 'Fraudulent Compounding' of GLP-1 Medications

Bad blood is brewing among some major players in the weight loss world. Novo Nordisk, the creator of Ozempic and Wegovy, cut short its partnership with telehealth company Hims & Hers Health Inc. over allegations that the latter is still trying to mass-market cheaper versions of the GLP-1 drugs.

Bloomberg News reported the abrupt dissolution of the partnership Monday, just two months after it was struck. Novo claims that Hims is using “deceptive marketing” to widely sell compounded semaglutide to its users, despite a recent crackdown from federal regulators. In a post to X, Hims CEO Andrew Dudum wrote, “We are disappointed to see Novo Nordisk management misleading the public. … 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.”

We are disappointed to see Novo Nordisk management misleading the public.

In recent weeks, Novo Nordisk’s commercial team increasingly pressured us to control clinical standards and steer patients to Wegovy regardless of whether it was clinically best for patients. We refuse to…

— andrewdudum (@AndrewDudum) June 23, 2025

The emergence of semaglutide and other effective weight loss drugs in recent years has greatly changed obesity medicine. But the surging demand, high list prices (upward of $1,000 a month), and initial shortages of these treatments soon spawned a black and gray market. Some people have gone online to buy illicitly obtained or counterfeit GLP-1 drugs (sometimes with dangerous results); others have instead opted for compounded versions—custom-made, often much cheaper formulations of semaglutide and tirzepatide created by specialized pharmacies.

For a time, compounded GLP-1 drugs were in murky terrain, legally speaking. Pharmacies are allowed to make and sell compounded drugs under certain circumstances, including if the standard versions are in shortage. And telehealth companies like Hims used this latter justification to widely market compounded GLP-1s to the public.

Unsurprisingly, Novo Nordisk and other GLP-1 makers weren’t fans of this practice and launched numerous lawsuits against these pharmacies and compounded GLP-1 sellers. These lawsuits are still underway, but the gravy train has largely already come to a end.

In February 2025, the Food and Drug Administration stated that nationwide shortages of the most popular GLP-1 drugs had resolved; the agency also set deadlines by which compounding pharmacies would have to stop producing compounded GLP-1s under this rationale. The compounding industry unsuccessfully tried to prevent this ruling. At least for the time being, pharmacies and companies like Hims are legally only allowed to provide compounded GLP-1 for very specific reasons, such as personalized doses or medically needed formulations (e.g., avoiding ingredients that might cause allergy).

In late April, the companies jointly announced that Hims would be allowed to sell discounted Wegovy. But Novo now alleges that Hims has been double-dealing. In a statement released Monday, it claims that Hims “has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization’ and are disseminating deceptive marketing that put patient safety at risk.”

Novo says it’s still open to working with telehealth companies so as long as they don’t engage in “illegal sham compounding,” and it has existing agreements with other companies, like Ro, to sell its drugs. But the short-term fallout isn’t looking good for either former partner; both Novo and Hims have experienced falling stock prices today following the announcement. Novo Nordisk has also been struggling in general as of late, having recently fired its CEO amid declining stocks and fierce competition from others in the obesity treatment space.