U.S. signals crackdown on compounded weight-loss drugs; Hims shares tumble

The U.S. Meals and Drug Administration mentioned on Friday it might take motion towards telehealth supplier Hims & Hers for its $49 weight-loss tablet, together with proscribing entry to the drug’s components and referring the corporate to the Division of Justice for potential violations of federal legislation.

Federal motion to restrict the manufacturing of compounded medicine could be a win for Novo Nordisk, which has been dropping share within the weight-loss market to rival Eli Lilly and telehealth companies like Hims. Nevertheless, the FDA didn’t clarify whether or not it might shortly halt the sale of Hims’ product, the most cost effective GLP-1 remedy on the U.S. market.

Shares of Hims fell 14.1% in after-hours commerce.

The FDA mentioned it plans to limit GLP-1 components utilized in non-approved compounded medicine that corporations equivalent to Hims and different compounding pharmacies have marketed as options to approved remedies. The company cited considerations over high quality, security and potential violations of federal legislation.

On Thursday, Reuters was first to report that Hims would start providing copies of Novo Nordisk’s new Wegovy tablet at an introductory worth of $49 per 30 days, about $100 lower than the model identify.

Novo Nordisk later mentioned it might take authorized motion towards the telehealth firm over its plan to promote compounded copies of the drug.

The U.S. Division of Well being and Human Companies’ Basic Counsel, Mike Stuart, additionally mentioned on Friday he has referred Hims & Hers to the Division of Justice for investigation over potential violations.

Hims mentioned in a press release that the corporate “has at all times operated with a deep dedication to the protection and greatest pursuits of shoppers and in compliance with relevant legislation.

“Now we have an extended historical past of efficiently working with regulators, and look ahead to persevering with to have interaction with the FDA to make sure protected entry to inexpensive healthcare.”

Novo Nordisk spokesperson Liz Skrbkova mentioned in a press release, “We welcome at present’s actions by HHS and FDA to guard sufferers from unapproved knockoff medicine made with international inauthentic lively pharmaceutical components that may pose important dangers to affected person security.”

A Lilly spokesperson mentioned the corporate applauded the FDA motion. “For years, compounders have been placing sufferers in danger by unlawfully mass-producing knockoff medicine utilizing substandard components from illicit international suppliers and promoting them with out scientific proof that they are protected and even work. Sufferers deserve higher, and we look ahead to decisive motion by FDA, different regulators, and legislation enforcement.”

Compounding, during which pharmacies combine components for specialised medicines or to repeat a drug however at completely different dosages, has flourished as Individuals chase cheaper costs for medicine.

The observe is authorized underneath the Federal Meals, Drug and Beauty Act in sure circumstances, like when prescribed by a doctor to handle affected person negative effects or throughout a drug scarcity.

Hims’ compounded drug will not be FDA-approved and has not undergone scientific trials to display efficacy.

The FDA’s enforcement actions towards Hims might embrace sending a warning letter, pursuing a court docket injunction, or conducting an administrative seizure of merchandise, mentioned Joanne Hawana, a member at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo.

The company would want the Justice Division’s assist to pursue an injunction, because it lacks impartial litigation authority, Hawana mentioned.

The FDA’s statements recommend that “this announcement by Hims, to the federal government, is regarding sufficient that they determined they are going to escalate,” Hawana mentioned.

Up to now, the FDA’s actions on weight-loss medicine have been restricted to warning letters despatched within the fall of 2025 to fight deceptive direct-to-consumer promoting and advertising and marketing.

Commissioner Marty Makary mentioned in a press release on Friday that the company will “use all accessible compliance and enforcement instruments inside its authorities to handle unsubstantiated claims and related public well being considerations.”

The well being regulator mentioned that, in promotional supplies, corporations can’t declare that non-FDA-approved compounded merchandise are generic variations or the identical as medicine authorised by FDA.

It added that “additionally they can’t state compounded medicine use the identical lively ingredient because the FDA-approved medicine or that compounded medicine are clinically confirmed to supply outcomes for the affected person.”