10:56 AM EDT, 06/23/2025 (MT Newswires) -- Novo Nordisk's ( NVO ) termination of its collaboration on the sale of weight loss drugs, including Wegovy, created a litigation risk for Hims & Hers Health ( HIMS ) , Truist Securities said in a note Monday.

The firm said any litigation from Novo was "highly unlikely" as long as a collaboration exists between the companies, but the risk of litigation "is back on the table" with the termination of the partnership.

Novo said earlier Monday that it ended the partnership because of concerns about Hims & Hers Health's ( HIMS ) "illegal mass compounding and deceptive marketing." Hims & Hers Health ( HIMS ) didn't immediately reply to MT Newswires' request for comment.

"A litigation, if there is one, could drag on for 18-24 months and could remain an overhang on [Hims & Hers Health ( HIMS )] shares," Truist said.

Truist maintained Hims & Hers Health's ( HIMS ) hold rating and $45 price target.

Shares of Hims & Hers Health ( HIMS ) fell more than 31% and Novo Nordisk ( NVO ) slid over 5% in recent Monday trading.

Price: 43.90, Change: -20.32, Percent Change: -31.64