Hims & Hers Health Inc. ( HIMS ) shares are trading higher Thursday. The stock appears to be bouncing back a bit after selling off to start the week. Here’s a look at what you need to know.

What To Know: Novo Nordisk on Monday terminated its collaboration with the telehealth company, accusing it of violating drug compounding laws and marketing practices related to semaglutide, the active ingredient in Wegovy.

Novo Nordisk issued a statement announcing it would no longer work with Hims & Hers, cutting off the company’s direct access to Wegovy through the NovoCare Pharmacy. The company further alleged that Hims & Hers Health ( HIMS ) failed to follow laws that prohibit mass sales of compounded drugs under the false appearance of "personalization" and used deceptive marketing with disregard for patient safety.

Novo Nordisk’s U.S. executive vice president, Dave Moore, said the company is committed to protecting patients from "illegal sham compounding" and vowed to continue to take action against such practices.

The FDA had previously ruled in April that semaglutide could no longer be compounded by outsourcing facilities, citing that supply levels were no longer low enough to justify exemptions. Hims & Hers had leaned heavily into GLP-1 sales during the supply shortage, reportedly generating over $225 million in 2024 revenue from its compounded offerings.

The stock recorded a massive 34% single-day drop after the collaboration between the two companies was abruptly brought to an end. With the stock’s relative strength index nearing oversold territory, shares appear to be finding some footing.

Hims & Hers CEO Andrew Dudum said the termination was misleading and that there had been rising tension between the two companies for months.

“They were pushing us to a degree that was uncomfortable. They’ve been losing a tremendous amount of market share … and I think they’re just under real financial strain to try to drive sales,” he reportedly said.

Hims & Hers Health ( HIMS ) derives over 80% of its revenue from non-weight-loss products, including treatments for acne, anxiety, and erectile dysfunction. The company remains a prominent direct-to-consumer brand in the telehealth space, particularly among younger users.

HIMS Price Action: Hims & Hers Health ( HIMS ) shares were up 11.3% at $46.13 at the time of publication Thursday, according to Benzinga Pro.

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