Novo Nordisk announced they are discontinuing a partnership they had with Hims $ Hers Health (HIMS) that gave the latter access to Wegovy. The reason provided by Novo Nordisk is a serious one - mass sale of compounded drugs under the misleading notion of personalization.
HIMS had grown to be a big stake for me until yesterday. Shares tumbled over 30%. Waiting for a response from HIMS.
I always wondered how tenable HIM’s business model vs valuations are.
I had a good postiion in it also. I had a stop set on it and lost a little over 10%. I thought they were in the clear by making an agreement with NOVO and it was a big surprise that they did this, at least for me. I will keep an eye on HIMS but I think it is going to be held down for awhile and more shorts will be coming out with short reports. It’s going to be a short battle for awhile but what do I know? It could very well come right back. It will be interesting to watch.
Here is Hims response.
“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 be strong-armed by any pharmaceutical company’s anticompetitive demands that infringe on the independent decision making of providers and limit patient choice,” Dudum said. "We take our role of protecting the ability of providers and patients to control individual treatment decisions extremely seriously, and will not compromise the integrity of our platform to appease a third party or preserve a collaboration. The health and wellness of individuals always comes first.
Wegovy maker ends partnership with Hims & Hers - ABC News’%20CEO%20Andrew%20Dudum,Nordisk%20management%20misleading%20the%20public.
I guess, which company version of events does one believe?
A majority of my stake in HIMS was acquired way before the collaboration between HIMS and Novo Nordisk (NVO) was announced. I guess, right now, I have to wait until HIMS provides any updated guidance on its expectation for 2025. And possibly going forward.