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In the bustling city of New York, a significant change is on the horizon for telehealth giant Hims & Hers. The company recently announced its decision to trim 4% of its workforce. This move comes in response to a recent U.S. Food and Drug Administration ban on producing mass copies of the popular weight-loss drug Wegovy by Novo Nordisk.
The impact of this decision has quickly reverberated through Hims’ operations and the financial markets, causing shares to plummet by 14%. With 68 employees set to depart, the company is bracing itself for a period of adjustment as it navigates these regulatory hurdles.
“These changes are focused on sharpening how we execute, without affecting our priorities or the specialties we’re committed to,”
shared a spokesperson from within Hims. This strategic realignment underscores the organization’s dedication to maintaining its core values and services amidst external pressures.
Looking back at 2022, the FDA initially identified a shortage in supply of Wegovy, leading compounding pharmacies to step in and produce generic versions to meet demand. However, following an announcement earlier this year declaring an end to the shortage, compounded copies were prohibited from sale due to patent restrictions.
When Hims introduced its own versions of Wegovy in 2024 at competitive prices compared to the brand-name product, subscriptions surged dramatically. Revenue saw an impressive 111% increase year over year during the first quarter of 2025 with Wegovy copies contributing significantly to the company’s overall earnings.
But as legal battles loom overhead stemming from Novo Nordisk, analysts speculate about Hims’ personalized approach being enough to shield them from further challenges.
“It remains to be seen whether HIMS method of personalization (titration and dosage) is enough… “
remarked Jailendra Singh, a healthcare analyst at Truist.
With plans underway for exploring new avenues such as low testosterone treatments and menopause solutions, Hims is determined not only to weather this storm but also emerge stronger than before. Collaborating with Novo Nordisk could potentially open doors for patients seeking access to Wegovy through legitimate channels while diversifying their portfolio with innovative healthcare offerings.
As stakeholders watch closely how this narrative unfolds within one of America’s most dynamic industries, one thing remains certain – adaptability and resilience will be key attributes for success in an ever-evolving landscape.
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