Hims Faces Regulatory Pressure and Expansion Challenges

Telehealth company's weight-loss drug business under scrutiny as it looks to diversify globally

Published on Mar. 2, 2026

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Telehealth company Hims & Hers Health, known for its weight-loss drug business, is facing regulatory scrutiny and expansion challenges as it tries to diversify away from its reliance on compounded GLP-1 sales in the U.S. The company recently reversed course on plans to launch a $49 version of Novo Nordisk's Wegovy pill after the FDA referred it to the Department of Justice. Hims is also facing new costs from its U.S. business and expansion into eight countries, including the UK and Australia, making it unclear whether it can meet its growth outlook.

Why it matters

Hims' weight-loss drug business has drawn regulatory scrutiny, and the company's expansion plans are adding new costs, raising questions about its ability to meet its growth targets and diversify away from its reliance on compounded GLP-1 sales. The regulatory pressure and expansion challenges could impact the company's financial performance and long-term viability.

The details

Hims drew regulatory scrutiny last month with its plan to launch a $49 version of Novo Nordisk's Wegovy pill. The company quickly reversed course after the FDA referred it to the Department of Justice and threatened to restrict the ingredients that pharmacies mix to make their compounded versions. Hims also disclosed recently that it learned in February of a U.S. Securities and Exchange Commission investigation. At the same time, the company is facing new costs from its U.S. business and expansion into eight countries, including the UK and Australia, making it unclear whether it can meet its growth outlook.

  • In February, Hims learned of a U.S. Securities and Exchange Commission investigation.
  • Last month, Hims drew regulatory scrutiny with its plan to launch a $49 version of Novo Nordisk's Wegovy pill.

The players

Hims & Hers Health

A telehealth company known for its weight-loss drug business.

Novo Nordisk

A pharmaceutical company that manufactures the Wegovy and Ozempic drugs, which Hims has made compounded versions of.

U.S. Food and Drug Administration (FDA)

The regulatory agency that referred Hims to the Department of Justice and threatened to restrict the ingredients that pharmacies mix to make their compounded versions of Novo Nordisk's drugs.

U.S. Securities and Exchange Commission (SEC)

The federal agency that is investigating Hims.

Andrew Dudum

The CEO of Hims & Hers Health.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

The takeaway

Hims' weight-loss drug business has drawn regulatory scrutiny, and the company's expansion plans are adding new costs, raising questions about its ability to meet its growth targets and diversify away from its reliance on compounded GLP-1 sales. The regulatory pressure and expansion challenges could impact the company's financial performance and long-term viability.