HIMS Stock Slumps After-Hours On FDA Crackdown, Regulatory Scrutiny Over Compounded Wegovy Pill Launch

• Health and Human Services' General Counsel Mike Stuart also referred the company to the Department of Justice for investigation over potential violations of laws.
• The probe comes on the heels of the company launching a compounded version of Novo Nordisk’s obesity pill called Wegovy on Thursday.
• Novo Nordisk subsequently said that it will pursue “legal and regulatory” actions against the online telehealth company.

Shares of Hims & Hers (HIMS) plummeted 14% after-hours on Friday after Health and Human Services' General Counsel Mike Stuart referred the company to the Department of Justice for investigation over potential violations of federal laws aimed at ensuring safety of drugs.

Stuart said in a post on X that he referred the company to the DOJ following a “review of applicable facts.”

The U.S. Food and Drugs Administration (FDA) Commissioner Martin A Makary also announced the agency’s intent to restrict the ingredients used by Hims for use in compounded drugs that are marketed as alternatives to FDA-approved drugs.

The agency said that it takes any legal violations seriously and added that its actions are aimed at safeguarding consumers from drugs for which the agency cannot verify quality, safety, or efficacy of.

The agency also said that it is taking steps to combat misleading advertising and marketing pertaining to compounded drugs and noted that companies cannot claim that non-FDA-approved compounded products are generic versions or the same as drugs approved by FDA.

Hims’ Compounded Wegovy Pill Launch Sparks Concerns

The probe comes on the heels of the company launching a compounded version of Novo Nordisk’s (NVO) obesity pill called Wegovy on Thursday.

Hims on Thursday launched a copy of the Wegovy pill with an introductory price of $49 per month, much below the price of the branded drug. The online telehealth company said the compounded copy uses the same active ingredient as Wegovy.

Novo Nordisk subsequently said that it will pursue “legal and regulatory” actions against the online telehealth company.

“This is another example of Hims & Hers' historic behaviour of duping the American public with knock-off GLP-1 products,” Novo said in a statement.

Novo launched the FDA-approved Wegovy pill in early January and it has had a great kickstart thus far.

Novo and Hims had a partnership in 2025, allowing the telehealth company to offer injectable Wegovy. However, the deal was called off within months. Novo said that Hims & Hers failed to adhere to the law, which prohibits mass sales of compounded drugs. It further alleged that the telehealth operator is promoting and selling illegitimate, knockoff versions of Wegovy.

Meanwhile, Hims CEO Andrew Dudum alleged that Novo management is “misleading the public.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around HIMS stock stayed within ‘extremely bullish’ territory over the past 24 hours, while message volume stayed within ‘extremely high’ levels.

A Stocktwits user said the stock is oversold and opined that the stock will bounce back.

Another bearish user recommended that investors just “sell and move on.”

HIMS stock has dropped 43% over the past 12 months. 

Read More: Netflix Reportedly Under Justice Department Radar For Anticompetitive Tactics In Warner Bros Merger Probe

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