NEW YORK, May 30 (Reuters) - Telehealth platform Hims &

Hers said on Friday it will cut 68 employees, or about

4% of its workforce, as it adjusts to a U.S. ban on

manufacturing mass copies of the weight-loss drug Wegovy.

A U.S. Food and Drug Administration ban on compounded copies

of Wegovy, made by Novo Nordisk, took effect on May

22. Hims shares have since dropped 14%.

The company said it is seeking new opportunities for growth,

including an agreement with Novo to help patients access Wegovy.

Hims plans to enter the market for low testosterone and

menopause treatments and is looking at offerings to improve

longevity and sleep.

"These changes are focused on sharpening how we execute,

without affecting our priorities or the specialties we're

committed to," a company spokesperson said regarding the

layoffs. Hims still plans to hire for roles related to its

long-term growth plans.

Bloomberg News reported the job cuts earlier on Friday.

In 2022, the FDA declared a shortage of Wegovy, which has

been shown to help patients lose around 15% of their body

weight. That declaration allowed compounding pharmacies to

produce the drug to meet demand.

The FDA in February said Wegovy was no longer in shortage

and ended the exception that allowed sale of mass compounded

copies of the patented medication.

Hims began offering copies of Wegovy in 2024, often at far

lower prices than the brand-name version.

That boosted subscriptions to the Hims telehealth platform,

with revenue up 111% on a yearly basis during the first quarter

of 2025.

Wegovy copies and similar GLP-1 weight-loss drugs accounted

for $200 million of the company's $1.5 billion revenue in 2024.

Hims and its rivals have pivoted to what they say are

customized copies of Wegovy that should not be subject to the

FDA decision, featuring smaller doses or allowing for a more

individualized plan for increasing dosage than offered by Novo.

But analysts said that personalization strategy may not be

enough to stave off new legal challenges from Novo.

"It remains to be seen whether HIMS method of

personalization (titration and dosage) is enough to meet the

compounding clinical exemption need," said Jailendra Singh, a

healthcare analyst at Truist.