Hims & Hers Pulls GLP-1 Knockoff After Legal Threats Send Shares Plunging 16%[Stocks](https://moneymorning.com/category/article/stocks/) # Hims & Hers Pulls GLP-1 Knockoff After Legal Threats Send Shares Plunging 16%  by Rich Duprey  February 9, 2026  Share it: **Hims & Hers Health** ( [HIMS](https://moneymorning.com/stocks/hims/)) launched a compounded semaglutide pill on Feb. 5 priced at an introductory $49 per month as an affordable alternative to **Novo Nordisk**’s ( [NVO](https://moneymorning.com/stocks/nvo/)) Wegovy pill, quickly drawing regulatory fire. The next day, the FDA announced plans to restrict active pharmaceutical ingredients for non-approved compounded GLP-1 drugs, explicitly citing safety risks and mass-marketing practices by companies like Hims. The same day, Health and Human Services’ referred the telehealth company to the Justice Dept. for potential federal food and drug laws violations. Novo Nordisk accused Hims of illegal mass compounding and threatened legal action. Hims shares plunged 16% in after-hours trading on Friday, reflecting deep investor anxiety over threats to its fast-growing weight-loss business. ## Regulatory Crackdown Intensifies The episode underscores long-simmering tensions. Compounded versions of GLP-1 drugs like semaglutide were permitted during shortages, but the FDA declared the semaglutide shortage resolved last February. Despite that, online providers continued mass-producing and marketing compounded alternatives, an approach that always appeared to skirt the rules. Both Novo Nordisk and **Eli Lilly** ( [LLY](https://moneymorning.com/stocks/lly/)) have repeatedly called for crackdowns on compounders, arguing they endanger patients with untested products lacking rigorous safety and efficacy data.  The timing made the $49 pill especially untenable. Both Novo Nordisk and Eli Lilly struck deals to offer steeply discounted branded GLP-1s through the Trump administration’s TrumpRx program, with Wegovy pills available for as low as $149 per month and other options around $300 to $350. A cheaper compounded knockoff suddenly looked not just legally risky but commercially unviable in a market where legitimate alternatives were becoming more accessible. After “constructive conversations with stakeholders,” Hims pulled the oral compounded semaglutide offering, stating it remains committed to safe, affordable care. ## HIMS Key Growth Driver Now Clouded Weight-loss offerings – heavily reliant on compounded GLP-1s – have been a major engine for Hims. The company projected approximately $725 million in weight-loss revenue for 2025, representing roughly 30% of its total guidance of $2.3 billion to $2.4 billion. This segment drove much of the firm’s recent subscriber and revenue acceleration, with earlier quarters showing hundreds of millions in GLP-1-related sales as compounded products helped attract price-sensitive customers. Hims growth outlook is now clouded. Broader FDA restrictions on compounded GLP-1 ingredients could curtail its ability to offer affordable alternatives, potentially slowing subscriber additions and revenue per user. While Hims had pivoted toward personalized and compounded formulations to maintain momentum after the official shortage ended, the latest regulatory and legal actions signal a tightening environment. Analysts and investors worry this could materially impact 2026 results and beyond, especially as branded manufacturers expand discounted access via TrumpRx. ## Bottom Line Hims & Hers boasts a diversified portfolio beyond GLP-1s, including popular offerings in hair loss, erectile dysfunction, skincare, mental health, and other telehealth categories. The company has deliberately expanded these verticals to reduce reliance on any single platform. Non-GLP-1 revenue has shown solid growth, and Hims continues investing in personalization, new markets, and subscriber experience. Yet the weight-loss segment was a critical growth platform, fueling rapid subscriber gains and revenue momentum. Losing easy access to this market may hinder the company’s ability to attract and retain new customers in one of the hottest health categories. Investors should not view this as a “buy-the-dip” moment. Greater clarity is needed on whether the rest of the business can fully offset the hit to growth and margins, and Hims’ execution on diversification will be essential before buying the stock. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Name This field is for validation purposes and should be left unchanged. 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