COPENHAGEN, June 23 (Reuters) - Novo Nordisk
said on Monday it would halt its collaboration with U.S.
telehealth company Hims & Hers Health ( HIMS ) over the
distribution of the Danish company's blockbuster Wegovy weight
loss drugs.
The two companies had announced a collaboration in April for
Hims & Hers to sell Wegovy through a bundled offering on the
telehealth company's platform.
Earlier this month, Hims said that it will continue selling
"personalized" doses of Wegovy, starting at around $165 a month,
under rules allowing it for clinical reasons such as decreased
side effects.
Hims also sells liraglutide, a generic version of an older
Novo diabetes drug that also causes weight loss, as well as
branded Wegovy and Eli Lilly's ( LLY ) rival Zepbound.
Wall Street analysts have questioned whether Hims' offerings
actually qualify as "personalized" and say it is unclear if
Novo, which has said mass production of copies is breaking the
law, will allow it.
Hims & Hers was not immediately available for a comment
outside of the company's regular work hours.
A U.S. federal judge on Friday rejected a bid by compounding
pharmacies to allow them to continue making copies of Novo
Nordisk's weight-loss drugs Ozempic and Wegovy, upholding the
U.S. Food and Drug Administration's decision to remove the
drugs' active ingredient, semaglutide, from the shortage list.
"Efforts will continue to make authentic, FDA-approved
Wegovy directly available through NovoCare Pharmacy to select
telehealth organizations that share our commitment to safe and
effective medical treatment for patients," Novo said.
Novo's share price fell following the announcement,
extending an earlier decline to trade down 6.5% by 1315 GMT.
Shares of Hims and Hers fell 22% to $50.02 in U.S. premarket
hours.