Patience Pays: Hims & Hers Surges on News of Novo Nordisk Deal

Key Points

• Hims & Hers has shifted from offering controversial compounded GLP-1s to a formal agreement with Novo Nordisk, allowing the platform to distribute FDA-approved Ozempic and Wegovy.
• Following the announcement, HIMS shares surged nearly 46%, helping the stock recover from a 59% drop earlier in the year caused by previous legal friction with Novo Nordisk.
• Analysts have upgraded the stock, citing the partnership as a major growth catalyst; despite a year-to-date loss, earnings are projected to grow by over 79% next year.

After falling 59% from its year-to-date (YTD) high, embattled healthcare stock Hims & Hers Health NYSE: HIMS is making headlines as shares are surging in the wake of an agreement with GLP-1 maker Novo Nordisk NYSE: NVO—the very company that filed a patent infringement lawsuit against Hims & Hers on Feb. 9.

After having to pull its compounded semaglutide modeled after Novo Nordisk’s weight loss drugs, Wegovy and Ozempic, Hims & Hers announced in a press release that the two firms have entered into a strategic partnership, making Novo Nordisk’s obesity drugs available through the telehealth platform. 

Since the announcement, HIMS has gained nearly 46% along with analyst upgrades as Wall Street turns bullish on the direct-to-consumer prescription drug provider. 

A Strategic Shift From Compounded GLP-1 to FDA-Approved Drugs

Amid surging demand and subsequent shortages for weight loss drugs, compounded GLP-1 alternatives emerged to fill the void. However, compounded GLP-1 drugs lack U.S. Food and Drug Administration (FDA) approval. 

While they increased affordable access to substitutes for brand-name drugs like Ozempic and Wegovy, while offering similar ingredient profiles (e.g., semaglutide and tirzepatide, the latter of which is marketed as Mounjaro and Zepbound), the absence of FDA approval means that those alternative drugs lacked quality and efficacy reviews, thereby posing a risk of incorrect dosages, improper storage, and other safety issues. 

According to Hims & Hers’s press release, as a part of the company’s shift away from compounded GLP-1 offerings, “existing patients will have the opportunity to transition to FDA-approved medicines.”

Specifically, “Hims & Hers has entered into an agreement with Novo Nordisk that will bring Ozempic (semaglutide) 0.5 mg, 1 mg, and 2 mg injections and Wegovy (semaglutide) pills and injections to the platform later this month, including 1.7 mg or 2.4 mg injections and 1.5 mg, 4 mg, 9 mg, and 25 mg tablets.”

Co-founder and CEO Andrew Dudum noted that the deal should result in “tremendous growth opportunities in the U.S. with the expanding assortment of branded GLP-1 medications.” Dudum added that the “collaboration reflects what’s possible globally when drugmakers, biotech companies, and diagnostic leaders partner with consumer platforms to support scaled distribution of their latest medical innovations.”

Shares of HIMS Are Still Struggling, But the Future Looks Promising

The recent news, as well as the sizable bump in the stock’s price, was warmly welcomed by shareholders who have dealt with Hims & Hers' volatility over the past year. Even in the wake of the Novo Nordisk-induced sell-off in February, analysts remained bullish on the stock, with some 12-month price targets implying as much as 150% potential upside.

Even with the March 9 surge, HIMS shares are still down nearly 33% over the last 12 months. But fundamentally, Hims & Hers looks well-positioned to sustain its run.  

When the company reported full-year and Q4 2025 earnings on Feb. 23, it announced an earnings per share (EPS) beat and a revenue miss. EPS of 8 cents surpassed analyst expectations of 2 cents, while revenue of $617.82 million fell short of expectations of $619.48 million. 

It was the company's first EPS beat since the first quarter of last year. But just as importantly, the financial metrics showed steady, sustainable revenue growth, with a three-year average of 64.60%. And while earnings contracted in 2025, that followed EPS growth of nearly 582% in 2024 and nearly 66% in 2023. 

Hims & Hers Health’s earnings are expected to grow 79.31% next year, from 29 cents per share to 52 cents per share.

HIMS Receives Analyst Upgrades as Wall Street Turns Bullish on Telehealth

Following the announcement of the Novo Nordisk deal, Bank of America Securities upgraded HIMS stock to Neutral from Underperform and raised its price target to $23 from $12.50.

Notably, the firm’s previous price target excluded contributions from GLP-1 revenue, showing that the agreement with Novo Nordisk is being seen as an extremely bullish catalyst on Wall Street.

Overall, the stock receives a consensus Hold rating based on 17 analysts currently covering the stock. The average one-year price target implies more than 32% potential upside.  

Current short interest of 43.24% of the shares outstanding should be monitored, but that figure—which equates to $1.32 billion worth of shares—is substantially lower than the $4.27 billion that were shorted last July. That downtrend has steadily continued, and it would not be surprising if institutional buyers once again outnumber sellers in the quarters ahead as the deal with Novo Nordisk will bolster Hims & Hers’ top-line growth.