Hims & Hers Plunges on Wegovy Copycat Fallout

Hims & Hers Health shares tumbled between 22% and 25% in morning trading on Monday, February 9, after the telehealth company scrapped its compounded version of Novo Nordisk’s Wegovy weight-loss pill. The move followed a weekend in which the firm reversed plans to sell a $49-per-month oral semaglutide product positioned as a cheaper alternative to Novo Nordisk’s branded pill.

The latest drop adds to a prolonged selloff. Hims & Hers is down 47.2% since the start of the year and trades at $17.66, about 74.3% below its 52-week high of $68.74 reached in February 2025. Over the past year, the stock has fallen 47%, while it is off 29% so far this year alone.

Market data show that Hims & Hers shares are highly volatile, with 81 moves greater than 5% in the last year. Still, moves of more than 20% remain unusual and underline how sharply investors adjusted their view of the company after the latest regulatory and legal developments.

Hims & Hers’ decision to halt its copycat semaglutide product came after mounting scrutiny from U.S. authorities. The U.S. Department of Health and Human Services referred the company to the Department of Justice for a potential investigation into possible violations of the Federal Food, Drug, and Cosmetic Act.

Separately, the U.S. Food and Drug Administration signaled it would crack down on the telehealth firm’s GLP-1 offerings, including potential actions that could cut off access to key ingredients used in compounded versions of semaglutide or lead to seizures of products. This pressure prompted the company on Saturday to announce that it would stop selling its knockoff version of Novo Nordisk’s pill.

The regulatory attention is focused on compounded GLP-1 drugs, an area in which Hims & Hers had sought to expand by offering discounted alternatives to well-known weight-loss therapies. The retreat leaves the future of its GLP-1-related business uncertain.

In parallel with U.S. government scrutiny, Wegovy maker Novo Nordisk has taken direct legal action against Hims & Hers. The pharmaceutical company filed a lawsuit accusing Hims & Hers of patent infringement and creating unsafe knockoff drugs through what it described as “illegal mass compounding and deceptive marketing.”

Novo Nordisk is seeking a permanent ban not only on Hims & Hers’ now-halted oral semaglutide pill but on any compounded versions of its semaglutide-based GLP-1 drugs. The company is asking the court to enforce its ’343 patent on semaglutide and pharmaceutical products containing it.

If successful, the lawsuit would prevent Hims & Hers from compounding GLP-1 weight-loss drugs using semaglutide, effectively eliminating the company’s ability to pursue that product category. The legal challenge follows earlier decisions by Novo Nordisk not to include Hims & Hers as a partner in Wegovy’s U.S. launch.

Despite the regulatory setback, Hims & Hers has reported rapid top-line growth. In the third quarter of 2025, revenue rose 49% year over year to $599 million, and the subscriber base expanded 21% to 2.5 million users. Adjusted EBITDA increased 53% to $78.4 million, although net income for that period fell 79% to $16 million.

Analysts have voiced concerns about slowing growth and margin pressures. A recent Morgan Stanley note projected revenue growth would slow to 17% in 2026, compared with 111% year-over-year growth in the first quarter of 2025. The firm also highlighted headwinds in the men’s sexual health segment, increased competition, weak third-party sales data, and potential risks to profit margins.

Other Wall Street firms have turned cautious as well. Bank of America downgraded the stock to “underperform” and cut its price target, while Citi maintained a “sell” rating and flagged risks to the company’s GLP-1 business. Technical indicators show the shares trading in oversold territory, and retail investor discussion on social media forums has surged in response to the stock’s sharp decline.