State regulators are intensifying scrutiny of Strive Pharmacy, a major compounding partner for telehealth companies including Hims & Hers $HIMS, following fresh allegations involving ketamine misuse and improper drug distribution. The investigation comes on top of existing concerns about how Strive compounded copycat versions of blockbuster weight-loss drugs originally developed by Eli Lilly $LLY ( ▲ 0.33% ) and Novo Nordisk $NVO ( ▲ 1.31% ) .
Strive had supplied the compounded oral semaglutide briefly sold by Hims earlier this year before the product was pulled under federal scrutiny. Now, new complaints could deepen regulatory pressure on the broader telehealth weight-loss ecosystem.
Questions around copycat weight-loss drugs
Regulators previously found that Strive began compounding semaglutide months before branded drugs were officially listed as being in shortage, a key condition that allows compounders to produce alternatives. Later inspections suggested the pharmacy continued producing large quantities even after shortage exemptions ended.
Inspectors also flagged unusually standardized justifications across prescriptions, raising concerns that patient-specific exemptions were being stretched to mass-produce cheaper versions of popular GLP-1 medications. Drugmakers have argued that such practices undermine safety standards and intellectual property protections.
Strive disputes those claims, saying its products are tailored to individual patients and comply with compounding laws.
Ketamine allegations raise new risks
Beyond weight-loss drugs, regulators are now reviewing complaints that Strive improperly compounded ketamine patches and tested them on an employee. Officials also cited concerns that unused patches were left in an office for others to use, suggesting potential breakdowns in oversight.
Investigators indicated that leadership involvement could be possible, though no formal findings have been made. The case is being examined jointly with California authorities.
Supplying drugs sold over the counter
A separate complaint alleges that Strive supplied prescription medications to a weight-loss clinic that allegedly sold them directly to customers without patient-specific prescriptions. The issue reportedly persisted for about a month after regulators flagged it.
State officials are now examining whether internal sales incentives or company culture contributed to the situation, including how sales staff are compensated.
For Hims & Hers and other telehealth platforms relying on compounding pharmacies, the outcome matters. As demand for GLP-1 treatments explodes, regulators are increasingly focused on whether rapid growth is outpacing safeguards designed to protect patients.