Hims & Hers, a prominent online provider of obesity medications, announced on March 16, 2024, that it would cease sales of a cheaper imitation of Novo Nordisk’s weight-loss drug, Wegovy. The decision comes after federal regulators raised concerns that the product might violate laws governing the sale of medications. Just two days prior, the company had launched the knockoff pill, which was quickly met with significant backlash.
The top lawyer for the U.S. Department of Health and Human Services, Mike Stuart, took to the platform X to reveal that Hims had been referred to the Justice Department for potential legal violations. Faced with this scrutiny, Hims stated their choice to withdraw the product was made following “constructive conversations with stakeholders across the industry.”
The introduction of Hims’ pill coincided with a surge in consumer interest in Novo Nordisk’s Wegovy, which has gained popularity since its launch. Approximately 170,000 individuals have purchased the Wegovy pill since it became available in early January 2024. This medication is currently priced at $149 for the first month, followed by $199 for subsequent months, making it a significant investment for those seeking weight-loss solutions.
Hims & Hers aimed to capitalize on the demand for weight-loss medications by offering its product at a lower price. The company priced its knockoff pill at $49 for the initial month and $99 for each following month, which was notably cheaper than the pricing structure of Novo’s product.
The timing of Hims’ announcement created a stir, as it overshadowed the unveiling of TrumpRx, a new government website designed to help patients find the lowest prices for their medications. The launch occurred just hours before President Donald Trump introduced the site, further intensifying the scrutiny on Hims’ actions.
In light of the regulatory concerns, Hims & Hers has now shifted its focus away from the controversial offering. The company’s decision underscores the challenges within the weight-loss medication market, where consumer demand continues to rise, but legality and safety remain paramount concerns.
As the situation develops, Hims & Hers will need to navigate the regulatory landscape carefully to avoid further complications and ensure compliance with healthcare laws. The weight-loss market remains a competitive space, and the fallout from this incident may influence future business strategies among providers looking to meet the rising demand for effective obesity treatments.
