Big Moves: June 23, 2025
What moved today and why? Hims & Hers, Northern Trust and Amgen
Putting It Back On
Well, that didn’t last long. Hims & Hers Health had a nice little run after the April announcement that the company was partnering with Novo Nordisk to distribute Wegovy through its telehealth platform. On Monday, HIMS dropped nearly 35% as news hit that Novo was breaking ties. Apparently, Hims & Hers continued to engage in the naughty activities of "deceptive marketing" and "illegal mass compounding." If you’ve seen their commercials, you get the concerns. Read more below.
For new readers, one of the main motivations behind starting Big Price Moves Explained was to have a reason to actively engage with AI on a daily basis—learning by doing. I maintain active editorial oversight over topic selection, model, and platform choices, but pretty much everything below this point is written by AI.
A quick preview of Monday’s notable moves:
Surprising Reactions: Amgen (AMGN) shares slid despite strong clinical data on its obesity drug, as concerns over competition and long regulatory timelines outweighed promising trial results.
Scandal Fallout: Hims & Hers Health (HIMS)* plunged after Novo Nordisk cut ties amid allegations of deceptive marketing and illegal compounding, with multiple law firms launching investigations.
Deal Speculation: Northern Trust (NTRS)* jumped on reports of merger talks with BNY Mellon, even as the company reaffirmed its intent to remain independent.
* These companies have the pros and cons discussed on their earnings calls or in other materials summarized in the Read section below.
Skim
This is where you come to quickly see if anything interesting is happening with names you care about. Think of it as informative advertising.
Hims & Hers Health Inc. (HIMS) - Health Care Providers (-34.63%) Hims & Hers Health Inc. (HIMS) experienced a significant decline of 34.63% in its stock price on June 23, 2025. The underlying reason for this drop was the termination of its partnership with Novo Nordisk, which was announced due to allegations of "deceptive marketing" and "illegal mass compounding" of semaglutide-based weight-loss treatments. This development led to multiple law firms initiating investigations into potential violations of federal securities laws by Hims & Hers, further impacting investor confidence. Sources: MT Newswires, Benzinga, Associated Press
Northern Trust Corp. (NTRS) - Asset Management & Custody Banks (+8.01%) Northern Trust Corp. (NTRS) is up 8.01% due to reported merger talks with Bank of New York Mellon (BNY). The news that BNY approached Northern Trust about a potential merger caused a surge in the stock price, as such a tie-up would create a significant investment-management entity. Despite Northern Trust's commitment to remaining independent, the market reacted positively to the possibility of a deal, viewing it as potentially beneficial for both companies. Sources: New York Post (NYPost), InvestmentNews, Nasdaq, The Fly, Benzinga, Yahoo! Finance
AMGEN Inc. (AMGN) - Biotechnology (-5.84%) Amgen Inc. (AMGN) shares fell by 5.84% due to the release of full results from part one of its phase two study of MariTide, its investigational obesity treatment. The study showed promising weight loss benefits but failed to boost investor confidence, likely due to concerns about competitive pressures in the GLP-1 space and the long road ahead for phase three trials. Despite strong clinical results, such as up to 20% average weight loss in participants without Type 2 diabetes, the market reacted negatively. Sources: Alliance News, Benzinga, Investor's Business Daily (IBD), Associated Press
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Read
In this section we offer a bit more detail in a couple of featured names.
Hims & Hers Health Inc. (HIMS) - Health Care Providers (41.98 | -34.63%)
Hims & Hers Hit by Partner Exit, FDA Concerns and Investor Lawsuits in Wegovy Fallout
Hims & Hers Health Inc. (HIMS) stock plummeted 34.63% on June 23, 2025, after Novo Nordisk abruptly terminated their partnership, citing allegations of "deceptive marketing" and "illegal mass compounding" of weight-loss drugs, which subsequently triggered multiple securities fraud investigations by law firms representing affected investors.
Novo Nordisk Partnership Termination
The Danish pharmaceutical giant Novo Nordisk ended its collaboration with Hims & Hers on June 23, 2025, after less than two months of partnership. According to the announcement, the termination was prompted by serious allegations that Hims & Hers was engaging in "illegal mass compounding" of semaglutide (the active ingredient in Wegovy) and employing "deceptive marketing" practices. Novo Nordisk specifically accused the telehealth company of selling "knockoff versions" of its blockbuster weight-loss drug Wegovy that potentially put patient safety at risk.
The partnership, which had only been established in April 2025, was intended to provide patients with direct access to all dose strengths of Wegovy through Hims & Hers' telehealth platform. The termination came shortly after the FDA had officially resolved the Wegovy shortage and prohibited compounding pharmacies from producing versions of semaglutide after May 22, 2025. With the partnership dissolved, Hims & Hers lost its ability to sell branded Wegovy products and direct access to Wegovy through NovoCare Pharmacy.
Regulatory and Safety Concerns
The core of Novo Nordisk's allegations centered on Hims & Hers' apparent violation of FDA regulations governing compounded medications. Despite the FDA officially resolving the Wegovy shortage in April 2025 and prohibiting compounding pharmacies from producing semaglutide versions after May 22, 2025, Hims allegedly continued marketing compounded versions of the drug. Beyond regulatory compliance issues, Novo Nordisk raised significant safety concerns about these compounded products, claiming they potentially contained "unsafe and illicit foreign ingredients" sourced from Chinese laboratories that failed to meet U.S. regulatory standards.
Legal Investigations Underway
In the wake of the partnership termination, at least five major law firms launched investigations into potential federal securities law violations by Hims & Hers Health. These include Hagens Berman, Block & Leviton, Rosen Law Firm, Law Offices of Howard G. Smith, and Faruqi & Faruqi, LLP. The investigations focus on allegations that the company issued materially misleading business information, downplayed risks associated with its compounding practices, and potentially artificially inflated stock prices by promoting Wegovy sales despite known regulatory risks.
Some law firms have highlighted the SEC Whistleblower Program, noting that individuals with non-public information about the company's practices may be eligible for rewards of up to 30% of any SEC recoveries. The legal scrutiny intensified market concerns, contributing to the stock's dramatic decline as investors worried about potential class action lawsuits seeking recovery of losses incurred following the revelations.
Financial Impact and Response
The stock's dramatic 34.63% decline erased billions in market capitalization, with HIMS closing at $41.98 from the previous day's $64.22 close after opening at $48.16 and steadily falling throughout the trading session. Trading volume surged to over 81 million shares—273% above average—as the company's market cap plummeted to approximately $9.04 billion, with some analysts suggesting the stock remained overvalued at a P/E ratio of 61.74 even after the selloff.
CEO Andrew Dudum defended the company on social media, claiming Novo Nordisk's commercial division had been pressuring them to "direct patients towards Wegovy" and asserting that Hims would "not be coerced by any pharmaceutical company's anticompetitive demands." In a subsequent statement, Dudum expressed disappointment with "Novo Nordisk management misleading the public" while emphasizing the company would maintain its platform's integrity despite the controversy that highlighted broader regulatory compliance risks in the telehealth sector.
Guided by Big Price Moves Explained; Sourced and written with Perplexity.ai in Deep Research mode [link with citations]
Northern Trust Corp. (NTRS) - Asset Management & Custody Banks (120.81 | +8.01%)
Northern Trust Stock Jumps on Merger Buzz as Firm Reaffirms Independence
Northern Trust Corporation (NTRS) shares surged 8.01% on June 23, 2025, after Bank of New York Mellon approached the Chicago-based financial services firm about a potential merger, as reported by The Wall Street Journal, despite Northern Trust's public commitment to remaining independent.
Market Reaction to Merger Talks
The news of potential merger talks drove Northern Trust's stock to a 52-week high of $123.31 during intraday trading on June 23, 2025, with trading volume reaching 14.7 million shares—approximately 704% of its average daily volume. This enthusiastic market response contrasted sharply with BNY Mellon's performance, as its shares declined by 3.8% during the same period.
Financial analysts viewed the potential combination favorably, with Citi analysts describing it as a "win-win" due to the complementary nature of both franchises. They subsequently raised their price targets for Northern Trust stock to $110 from $100, while maintaining that BNY would likely exercise pricing discipline, anticipating only around a 10% acquisition premium given Northern Trust's relatively high valuation. The market's positive reaction reflected investor confidence in the strategic benefits of consolidation in the financial services sector, despite Northern Trust's firm stance on independence.
Northern Trust's Independence Stance
"While our policy is to not comment on market rumors, I can tell you that Northern Trust is fully committed to remaining independent and continuing to deliver long-term value to our stakeholders, as we have for the past 135 years," stated a Northern Trust spokesperson in response to the merger speculation. This firm rejection of any potential deal underscores the company's strategic positioning as one of the few remaining major independent banks in Chicago amid increasing financial sector consolidation.
The 135-year-old institution views independence as crucial to preserving its specialized focus and client relationships, particularly in its wealth management business serving ultra-high-net-worth clients, including approximately 20% of the Forbes 400. Despite this stance, Northern Trust's Q1 2025 results demonstrated robust performance with 9% year-to-date share growth, driven by strong wealth management fees and institutional client wins, suggesting the company remains confident in its ability to deliver value as a standalone entity.
Strategic Value Assessment
The potential merger would create a financial services powerhouse by combining two of the world's largest asset-servicing businesses. BNY Mellon currently oversees $53.1 trillion in assets under custody and administration as of March 31, 2025, while Northern Trust manages $16.9 trillion in assets under custody and $1.6 trillion in assets under management. Together, they would establish an investment-management entity overseeing more than $3 trillion in assets.
This consolidation reflects broader industry trends as custodial banks seek scale advantages in an increasingly competitive environment. The complementary nature of their businesses presents strategic synergies:
Both institutions provide similar services including custody of client assets, wealth management, and banking operations
Northern Trust's expertise with ultra-high-net-worth clients would enhance BNY's wealth management offerings
BNY Mellon's global reach would complement Northern Trust's specialized focus
The combined entity would likely achieve significant operational efficiencies and cost savings
Market size disparity is substantial, with BNY's market capitalization of approximately $65.55 billion dwarfing Northern Trust's $23.5 billion valuation
Regulatory and Competitive Landscape
Any potential merger between BNY Mellon and Northern Trust would face substantial regulatory scrutiny, particularly given the Trump administration's stance on bank consolidations. While the administration has shown a generally favorable position toward bank mergers—evidenced by the approval of Capital One's $35 billion acquisition of Discover—antitrust concerns would likely arise due to the combined entity's potential market dominance in asset servicing and wealth management.
The competitive landscape includes other major players such as State Street, JPMorgan, and Citigroup, which remain significant competitors in custody and wealth management services. This market fragmentation might help address some antitrust concerns, though regulators would carefully examine the combined market share and potential impact on competition. The situation continues to evolve as market participants monitor whether BNY Mellon will pursue a formal offer despite Northern Trust's stated preference for independence.
Guided by Big Price Moves Explained; Sourced and written with Perplexity.ai in Deep Research mode [link with citations]
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