Hims stock plummeted Monday after a high-profile spat led obesity kingpin Novo Nordisk ( NVO ) to end the companies’ monthlong collaboration. The drugmaker accused Hims & Hers Health ( HIMS ) of “deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk.” Novo said it will not longer allow its weight-loss blockbuster Wegovy to be bundled with a Hims membership for $599 a month. The companies struck the deal in April, and Hims stock catapulted. Hims Chief Executive Andrew Dudum batted back, saying Novo’s commercial team was pressuring Hims & Hers to steer patients toward branded Wegovy “regardless of whether it was clinically best for patients.” “We refuse to be strong-armed by any pharmaceutical company’s anticompetitive demands that infringe on the independent decision making of providers and limit patient choice,” Dudum said in a post on the social media platform X, formerly Twitter. In midday trades on today’s stock market , Hims stock crashed more than 33% to 42.76. Shares earlier ranked third on the IBD 50 list of elite growth stocks. Hims stock is also featured this week on Investor’s Business Daily’s New America page. Novo Nordisk stock also dropped, falling 6% to 69.36. Despite the deal with Novo, Hims & Hers has continued to sell its own compounded version of semaglutide, the chemical ingredient behind Wegovy. Compounding pharmacies can make copies of branded drugs to help bridge supply gaps. But the Food and Drug Administration decided this spring that semaglutide is no longer in shortage. Telehealth companies, though, say some patients will still need personalized compounded copies of Wegovy for medically necessary reasons, such as allergies or side effects experienced at the branded dosages. Compounders can make smaller, incremental doses to help ease the side effects of weight-loss drugs, which are generally gastrointestinal in nature. But Novo says Hims “failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of ‘personalization.’ ” The drugmaker also accused Hims of “disseminating deceptive marketing that puts patients at risk.” Novo Nordisk says companies in China are making the compounded semaglutide. The FDA has never authorized or approved the manufacturing process used by any foreign suppliers that make semaglutide. Further, many were never inspected by the FDA. Those that were had drug quality assurance violations, Novo said, citing a report from the Brookings Institute. Dave Moore, Novo’s executive vice president of U.S. operations, says the company will still work with some telehealth companies to provide direct access to Wegovy. “When companies engage in illegal sham compounding that jeopardizes the health of Americans, we will continue to take action,” he said in a statement. Dudum, Hims’ CEO, says the company will continue to sell branded Wegovy on its website, though not as part of its membership plans, in addition to other options. He said Hims & Hers takes “extremely seriously” the ability of patients and providers to control individual treatment decisions. Hims “will not compromise the integrity of our platform to appease a third party or preserve a collaboration,” he said. “The health and wellness of individuals always comes first.” Hims stock had been on a run since the company announced the deal with Novo . Shares jumped 23% on April 29 after the companies announced the collaboration. Since then, Hims stock has traveled another 83% higher. Shares currently have a best-possible 99 IBD Digital Relative Strength Rating , putting them in the leading 1% of all stocks when it comes to 12-month performance. But on Monday shares undercut their 50-day line in a bearish move, MarketSurge shows. Leerink Partners analyst Michael Cherny says the deal remained at odds with Hims’ desire to continue selling personalized semaglutide. “The company’s partnership with NovoCare seemed to position HIMS for broader growth beyond its personalization efforts,” he said in a report. “Today’s news creates more questions on where the pathway forward for weight loss goes, both for this year and the long-term trajectory.” He expects Hims & Hers to continue selling personalized semaglutide, liraglutide — which Novo sells under the brand name Victoza for type 2 diabetes — and a cocktail of oral supplements for weight loss. “Even with all these revenue streams, the bigger concern (rightfully so) is the ability for those revenue streams to fill the expected hole that the end of the NovoCare partnership creates,” he said. Cherny kept his market perform rating on Hims stock. Follow Allison Gatlin on X/Twitter at @AGatlin_IBD . 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