June 24, 2025
Hims & Hers stock plummeted nearly 35% Monday after Novo Nordisk announced it was ending a collaboration to make its blockbuster weight-loss drug, Wegovy, available on Hims’ telehealth platform.
Novo Nordisk said that Hims & Hers was breaking the law by continuing to sell copycat semaglutide, the key ingredient in Wegovy, alongside Novo’s branded drugs.
“Hims & Hers … has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization,'” Novo said in a statement Monday. Novo shares lost around 5.5%.
Hims & Hers CEO Andrew Dudum posted on X several hours later, claiming that Novo’s commercial team was pressuring it to “steer patients to Wegovy.”
Commentary
This is not a fight that Hims & Hers can win. Novo’s legal staff, much larger than Hims & Hers, will prevail. Hims & Hers has no grounds for defense, they blatantly went against FDA rules that specified that compounders must stop selling GLP-1s. The argument that they are “personalizing ” the prescriptions doesn’t hold water. You made a lots of money selling the compounded drugs H&H, good while it lasted, but the party is over. deal with it and move on.
Learn More About The Market for Medical Weight Loss Programs
Marketdata LLC has published anew 154-page analysis of the U.S. weight loss market, entitled: “The U.S. Medical Weight Loss Market: The Impact of GLP-1 Drugs on Doctors, Hospitals, Clinics and Franchises”, February 2025. This report presents a complete picture of the medical weight loss market in the United States, with the inter-relationships between competing MDs, clinics, surgeons, commercial weight loss companies and pharmaceutical firms.
At no other time in the U.S. weight loss market history has one product so dominated the market as have the new GLP-1 weight loss drugs. American dieters have flocked to them, shunning commercial weight loss programs such as Weight Watchers, Medifast, as well as retail and MLM meal replacements.
Demand soared in 2023 and 2024 for Ozempic, Wegovy, Saxenda, Mounjaro and Zepbound — with more new drugs coming in the next few years.
The booming market for GLP-1 drugs has attracted physicians, nurses, dieticians, telemedicine services, medical weight loss franchises, compounding pharmacies, and entrepreneurs – all looking to cash in. However, the party may soon be over for the compounders, as the FDA declared and end to the shortage of the major drugs.
Some Report Findings:
- The value of the U.S. medical weight loss market is estimated to have more than tripled since 2019, to $33.8 billion in 2024. Average annual growth of 12% is forecast through 2028.
- The prescription obesity drugs market soared from $5.0 billion in 2022 to $26.4 billion by 2024, due to the high demand for new GLP-1 drugs. More than 8% of Americans are now estimated to be using them.
- The number of weight loss surgeries has declined 25% since 2022, to 211,000 procedures, as Americans opted for the new drugs instead. This market segment is worth $5.29 billion.
- Hospitals have had a mixed record with weight loss programs. Only 29% of the nation’s hospitals (about 1,400) provide some form of weight loss program – surgery or a non-surgical program.
- Medical weight loss programs represented 11.7% of the total U.S. weight loss market in 2022, but this share is forecast to triple to 36% by 2028.
- Prescription weight loss drugs have stolen major market share from commercial weight loss companies, the meal replacements market, health clubs, the bariatric surgery market, and more.
- The top 11 medical weight loss franchises and regional chains are estimated to generate $264 million in system-wide sales annually. Most franchises are not growing.
Purchase This Report
The report may be purchased at the Marketdata website’s store. Price: $1,495. Or call: 813-971-8080. Table of Contents available, see home page, link for Diet Market – Our Specialty.