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Reading: US indicators crackdown on compounded weight-loss medication; Hims shares tumble
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Stock Market

US indicators crackdown on compounded weight-loss medication; Hims shares tumble

Editor
Last updated: February 7, 2026 12:29 am
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Published: February 7, 2026
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US indicators crackdown on compounded weight-loss medication; Hims shares tumble


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

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

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

The FDA stated it plans to limit GLP-1 elements utilized in non-approved compounded medication that corporations similar to Hims and different compounding pharmacies have marketed as options to approved remedies. The company cited issues 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 value of $49 per thirty days, about $100 lower than the model title.

Novo Nordisk later stated it could 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 Providers’ Common Counsel, Mike Stuart, additionally stated on Friday he has referred Hims & Hers to the Division of Justice for investigation over potential violations.

Hims stated in an announcement that the corporate “has at all times operated with a deep dedication to the security and greatest pursuits of customers and in compliance with relevant legislation.

“We’ve got an extended historical past of efficiently working with regulators, and stay up for persevering with to interact with the FDA to make sure secure entry to reasonably priced healthcare.”

A Lilly spokesperson stated the corporate applauded the FDA motion. “For years, compounders have been placing sufferers in danger by unlawfully mass-producing knockoff medication utilizing substandard elements from illicit international suppliers and promoting them with out scientific proof that they are secure and even work. Sufferers deserve higher, and we stay up for decisive motion by FDA, different regulators, and legislation enforcement.”

Compounding, by which pharmacies combine elements for specialised medicines or to repeat a drug however at totally different dosages, has flourished as People chase cheaper costs for medication.

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 unwanted effects or throughout a drug scarcity.

Hims’ compounded drug is just not FDA-approved and has not gone by means of scientific trials to show efficacy.

The FDA’s enforcement actions towards Hims may embody sending a warning letter, pursuing a courtroom injunction or conducting an administrative seizure of merchandise, stated Joanne Hawana, a member at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

The company would wish the assistance of the Justice Division to pursue an injunction, because it lacks unbiased litigation authority, Hawana stated.

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

Up to now, the FDA’s actions on weight-loss medication 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 stated in an announcement on Friday that the company will “use all out there compliance and enforcement instruments inside its authorities to handle unsubstantiated claims and related public well being issues.”

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

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

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