The FDA has begun cracking down on telehealth companies like Hims & Hers for promoting unapproved and misleading versions of prescription drugs, including weight loss medications, as part of a broader effort to ensure truthful pharmaceutical advertising. The agency sent over 100 cease and desist letters to companies making false claims, highlighting concerns over online drug promotion and advertising practices that may mislead consumers about drug safety and efficacy.
FDA Commissioner Martin Makary criticized Hims & Hers' Super Bowl ad for violating federal law by promoting weight-loss drugs without discussing potential side effects, highlighting concerns over misleading direct-to-consumer pharmaceutical advertising and a decline in FDA enforcement actions.
Hims & Hers Health stock declined while GoodRx shares rose following a deal with Novo Nordisk, reflecting differing market reactions to recent corporate developments.
Hims & Hers, a telehealth company known for weight-loss drugs, experienced a volatile quarter with a significant stock decline due to sales disappointments and market uncertainties, especially in its weight-loss and sexual health segments, raising questions about its long-term growth prospects.
Stock futures rose as markets gained optimism for a September rate cut. Palantir surged 5.3% after strong Q2 earnings and raised full-year guidance, while Vertex fell 16% due to a failed drug trial. Hims & Hers dropped 13% amid lower-than-expected profits, and other companies like DuPont and Axon reported mixed results. BP and AMD showed positive movements, with BP exceeding profit expectations and AMD preparing to report earnings. Several other companies are set to release earnings today.
Hims & Hers stock dropped over 11% after missing Wall Street's Q2 sales forecast despite higher profits, as the company shifts focus to personalized healthcare and faces challenges in its obesity-related business. The company maintains its annual sales guidance but faces scrutiny over its core business and recent market performance, amid a broader industry context involving weight-loss drugs and strategic partnerships.
Hims & Hers stock dropped 10% after missing revenue expectations in Q2, despite a 73% revenue increase year-over-year and higher net income. The company forecasted Q3 revenue slightly below analyst estimates and reported strong EBITDA, but faced controversy over compounded drug sales and a failed collaboration with Novo Nordisk.
Hims & Hers will offer generic semaglutide in Canada after Novo Nordisk's patent on Ozempic and Wegovy expired in January 2023 due to non-payment of maintenance fees, opening the market for more affordable weight loss treatments. The Canadian market for semaglutide is rapidly growing, and Hims aims to provide accessible, high-quality care, although the approval process for generics is still underway. Novo Nordisk's patent lapse was due to administrative oversight, and the company has stated that patent expirations are part of the normal lifecycle of pharmaceutical products.
Hims & Hers experienced a setback after its partnership with Novo Nordisk ended abruptly due to disputes over marketing and the sale of compounded versions of Wegovy, a popular weight-loss drug. The split highlights tensions between telehealth platforms and pharmaceutical companies, with Hims & Hers continuing to expand its offerings despite legal and regulatory challenges. The company, which has grown rapidly and aims for significant revenue by 2030, faces potential revenue loss from the termination of its partnership but remains focused on broadening its healthcare services.
The partnership between Novo Nordisk and Hims & Hers to distribute Wegovy quickly collapsed after 55 days, with Novo Nordisk accusing Hims of illegal drug compounding and deceptive marketing, leading to a significant stock decline for Hims and raising questions about future collaborations and the company's growth strategy.
Hims & Hers Health plans to continue making cheaper, compounded versions of Novo Nordisk's weight-loss drug Wegovy despite Novo ending their partnership and accusing the company of legal violations. The CEO emphasized their commitment to patient choice and independence from pharmaceutical pressure, even as legal and regulatory challenges persist.
Novo Nordisk has ended its partnership with telehealth company Hims & Hers over concerns of deceptive marketing practices related to weight-loss drugs, specifically the continued sale of unapproved compounded versions of semaglutide, which pose health risks. The partnership, which offered Wegovy at a discounted price, was short-lived and terminated due to these issues.
Hims & Hers stock dropped about 35% after Novo Nordisk ended its partnership, citing illegal sales of copycat drugs, leading to multiple analyst downgrades due to legal and competitive concerns. Wall Street remains cautious, with a consensus of hold ratings and concerns over potential litigation and impact on revenue.
Hims & Hers stock dropped 33% after Novo Nordisk ended their partnership due to alleged illegal and deceptive practices related to the sale of compounded versions of Wegovy, citing patient safety concerns and pressure to prescribe the drug regardless of clinical appropriateness.
Hims & Hers stock dropped nearly 35% after Novo Nordisk ended their partnership, citing illegal and deceptive practices related to the sale of illicit compounded versions of Wegovy, a weight-loss drug, and alleged pressure on prescribing practices. The dispute highlights ongoing issues with drug supply shortages and regulatory enforcement in the pharmaceutical industry.
