Plus: XX-XY Athletics CEO makes strong anti-HR statement online; TSA takes proactive approach to record travel days.
Drugmaker Novo Nordisk this week ended its short-lived partnership with telehealth company Hims & Hers Health, Inc. over claims of deceptive marketing for its sale of both generic and name brand semaglutides.
Hims & Hers, known well for their personalized approach to health, saw its shares drop more than 30% following the announcement of the broken deal Monday.
According to a press release, Dave Moore, executive vice president of U.S. Operations of Novo Nordisk said: “Novo Nordisk is firm on our position and protecting patients living with obesity. When patients are prescribed semaglutide treatments by their licensed healthcare professional or a telehealth provider, they are entitled to receive authentic, FDA-approved and regulated Wegovy.”
Novo claims Hims’ continued sales of Wegovy copies “after a U.S. judge on Friday upheld the FDA’s decision to remove semaglutide from its list of drugs in shortage,” according to Reuters. “Weight-loss drugs exploded in popularity in the last few years, and the subsequent shortages opened the doors to cheaper copies like those sold by Hims & Hers.”
Hims’ Founder and CEO Andrew Dudum fired back in a post on X, saying:” In recent weeks, Novo Nordisk’s commercial team increasingly pressured us to control clinical standards and steer patients to 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.”
Novo did not respond to Dudum’s post that amassed more than 1.1 million views.
Why it matters: This situation got dicey pretty quickly. For PR pros, there are some key implications here. When it comes to partnerships and brand alignment, it’s important to vet potential partners to ensure that values and practices match in order to avoid reputational damage.
Further, when your organization comes across some unpleasant information about a brand you’re working with and it’s apparent the partnership is headed south, have a plan in place and be clear about why you’re severing ties to stakeholders.
Only a month into the deal with Hims & Hers, Novo Nordisk stated clearly and firmly why it was walking away and reaffirmed its commitment to safety and quality. Transparency in times of crisis is paramount. It’s also important to consider ethical considerations, especially in healthcare. Novo made it clear what its standards are and is promising not to sway from them.
Hims & Hers have also stood by their practices, as Dudum’s message showed. They are not backing away from their stance as health providers and say they are committed to more options for patients. They also showed clarity by stating they are unwilling to be bullied into a corner by pharma companies. They did not address their marketing tactics, however, which could leave some confusion about what’s true or how safe their offered options are, which could lead to some lasting damage, shown by their initial market share drop.
Editor’s Top Picks:
- XX-XY Athletics CEO Jennifer Sey this week posted a strong opinion about HR on X. It is one that’s drawing lots of attention, more than 7 million views, for its strong opposition to the business department, saying: “I want to be the first company that has no HR. They produce nothing. They monitor our words. They tell us what we can and cannot say. They inhibit creativity. If it’s just recruiting, fine, do that, but do not get in my business and tell us how we have to talk about things, what we can say, what words are acceptable, and what words are not. It’s terrible for business.” Sey is known for being outspoken and blunt on socials. But here’s why this matters. Sey is saying HR is terrible for business, but what about company morale? Or protecting individuals? What lessons does her message tell her employees about what she values, or what she doesn’t care about? She risks alienating stakeholders and creating a negative work environment by giving HR no value in the workplace. Not to mention, HR departments provide ethical and legal guidelines that protect companies. Sey would be better served to speak internally with her team, create appropriate guidelines that align with her creativity and brand and then seek employee feedback to ensure everyone feels the environment is positive, productive and adequately represented. As reported by Inc.: “Sey’s problem isn’t with HR. It’s with bad HR. And as a CEO, she can hire good HR. She can either (as her company grows) hire someone good or hire a slew of consultants and attorneys. That’s up to her. But until the law changes, she had better watch her words to make sure she doesn’t violate the law. Any good HR practitioner would tell her that.”
- It is that time of year where airport security lines begin to feel impossibly long with summer travelers. Though, in my humble opinion, this has kind of become a year-round issue. Nonetheless, TSA announced this week that during the 4th of July holiday, it expects to see a record number of travelers, up to 18.5 million, between July 1 and 7. To reassure travelers, TSA said it has plans in place to keep the lines moving and help ensure less headaches with reinforced security and improved technology for faster wait times. Yay for keeping shoes on! This isn’t necessarily news people will be happy to hear. But still, TSA is doing a few things right. They’re being proactive by getting the message out early. They’re leading with the facts: airports are going to be crazy, so plan for it and show up early, thus managing expectations. They’re also promoting efficiency with improved tech measures. Proactive steps to alleviate stress can help avert a crisis before it begins.
- Speaking of flying, United Airlines is additionally leveraging an increase in travel through improvements to its mobile app. The updates provide customers with a much more detailed look at their connecting flights that could help save time. From a company release this week: “Customers with connecting flights at United’s U.S. hub airports can now access a special section of the app that includes a countdown to connecting flights, customized turn-by-turn directions to their connecting gate with estimated walk times, real-time flight status updates, tips for longer layovers, and notifications if United’s ConnectionSaver technology has been activated to hold the plane for them.” As peak travel season gets underway, United’s launch comes just in time for a potential boost in engagement, the opportunity to recruit more users to its app and drive greater sales for the airline. The ability to alert a gate agent if you’re running behind through the app also helps differentiate United from its competitors. The launch also serves as a bit of good news after United grappled with a string of delays at its hub in Newark in recent weeks.
Courtney Blackann is a communications reporter. Connect with her on LinkedIn or email her at courtneyb@ragan.com.
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