10:39 AM EDT, 06/23/2025 (MT Newswires) -- Novo Nordisk ( NVO ) said that it ended its collaboration with Hims & Hers Health ( HIMS ) on the sale of weight loss drug Wegovy, claiming the telehealth firm has been selling illegitimate knock-off versions of the injection.

The Danish pharmaceutical giant entered into a partnership with Hims & Hers Health ( HIMS ) late in April, offering Wegovy through the latter's platform.

The collaboration was part of Novo Nordisk's ( NVO ) efforts to transition patients to Food and Drug Administration-approved Wegovy from knock-off versions, after the regulator concluded that the injection's shortage was over, the company said Monday.

Hims & Hers Health ( HIMS ) "has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of 'personalization' and are disseminating deceptive marketing that put patient safety at risk," Novo said.

Novo Nordisk's ( NVO ) New York Stock Exchange-listed shares fell 5.6% in Monday trade, while Hims & Hers plunged 30%.

"We will work with telehealth companies to provide direct access to Wegovy that share our commitment to patient safety -- and when companies engage in illegal sham compounding that jeopardizes the health of Americans, we will continue to take action," Dave Moore, executive vice president of Novo Nordisk's ( NVO ) US operations, said in a statement.

Hims & Hers didn't respond to a request for comment by MT Newswires.

Truist Securities said in a note that it expects the partnership's termination to weigh on Hims & Hers' traffic and compounding business.

"Near-term, we do not believe branded Wegovy was driving any meaningful subscriber or revenue for (Him & Hers) -- likely contributing to Novo's decision to end the collaboration," Truist Managing Director Jailendra Singh wrote.

Novo Nordisk ( NVO ) could seek litigation against Hims & Hers, which could drag on for up to two years, Singh said.

In May, Novo Nordisk ( NVO ) reported first-quarter sales of 78.09 billion kroner ($12.07 billion), up 19% year on year. Wegovy contributed 17.36 billion kroner to the overall topline that quarter.

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