Telehealth provider Hims & Hers announced on Friday that it will lay off 68 employees and about four per cent of its workforce as it responds to a recent U.S. Food and Drug Administration (FDA) ban on mass-produced copies of the popular weight-loss drug Wegovy.
The FDA’s ruling, which took effect on May 22, prohibits compounded versions of Wegovy, a drug developed by Novo Nordisk. Following the announcement, Hims’ stock has dropped by 14 per cent.
Despite the setback, the company says it remains focused on growth and is in talks with Novo Nordisk to potentially facilitate patient access to the branded Wegovy product. In addition, Hims plans to expand its offerings to include treatments for low testosterone, menopause, longevity, and sleep health.
“These changes are focused on sharpening how we execute, without affecting our priorities or the specialities we’re committed to,” a company spokesperson said. Hims emphasized that it will continue hiring for roles that support its long-term strategy.
The company had begun offering compounded versions of Wegovy in 2024, pricing them significantly lower than the branded drug. These offerings fueled rapid growth in subscriptions, helping boost revenue by 111per cent year-over-year in the first quarter of 2025. Sales of Wegovy copies and similar GLP-1 drugs generated $200 million of Hims’ $1.5 billion total revenue in 2024.
Previously, in 2022, the FDA had declared a shortage of Wegovy, temporarily allowing compounding pharmacies to produce the drug. That exception ended in February 2025 when the FDA declared the shortage resolved.
In response to the ban, Hims and other companies have started offering what they describe as “personalized” versions of Wegovy. These alternatives feature smaller doses or customized titration plans intended to fall outside the scope of the FDA’s restrictions.
However, analysts remain sceptical. Jailendra Singh, a healthcare analyst at Truist, noted that it’s still unclear whether these personalization strategies are sufficient to meet the FDA’s criteria for compounding exemptions, potentially opening the door to future legal challenges from Novo Nordisk.
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