TLDR

  • Hims & Hers (HIMS) shares climbed over 44% during premarket hours Monday following a Bloomberg report about Novo Nordisk distributing weight-loss medications through its platform
  • An official partnership announcement could arrive as soon as Monday
  • This agreement represents a dramatic shift after Novo filed suit against Hims in February regarding a replicated version of its oral Wegovy medication
  • Leerink’s Michael Cherny described the development as “both a surprise and an unabashed positive for HIMS’ stock” while maintaining a Market Perform rating
  • Morgan Stanley analyst Craig Hettenbach indicated the partnership could reduce legal and regulatory concerns that had pressured the heavily shorted shares

Shares of Hims & Hers Health (HIMS) rocketed more than 44% during premarket hours Monday following Bloomberg’s report that Novo Nordisk will distribute its weight-loss medications via the Hims platform.

According to the report, the companies may make a formal announcement as early as Monday. The development drove HIMS significantly higher, while Novo’s Copenhagen-traded shares gained approximately 1%.


HIMS Stock Card
Hims & Hers Health, Inc., HIMS

This represents a dramatic reversal for shares that had declined roughly 51% year-to-date prior to Monday’s session.

The partnership will enable Novo’s obesity medications — including products connected to its Ozempic and Wegovy franchises — to reach consumers directly through the Hims platform. This collaboration stands in stark contrast to the contentious relationship between the companies in preceding months.

Novo initiated legal action against Hims in February after the telehealth provider introduced a replicated version of Novo’s oral Wegovy weight-loss medication. Novo maintained the product violated patents associated with its bestselling treatments.

The lawsuit represented another chapter in their ongoing disputes. Novo had earlier challenged Hims for allegedly promoting compounded alternatives to its medications following previous disagreements between the parties.

Analyst Reaction

Michael Cherny from Leerink characterized the news as “both a surprise and an unabashed positive for HIMS’ stock.” He suggested the agreement may eliminate what appeared to be “a protracted legal process that could include a full trial.”

Cherny remained cautious despite the favorable development. “Even with this positive news, we do not see this as a clearing event for HIMS to fully recapture its growth potential,” he noted, maintaining a Market Perform rating.

Craig Hettenbach from Morgan Stanley shared a comparable perspective. He indicated the collaboration could diminish a major concern affecting HIMS — the regulatory and legal uncertainties surrounding its weight-loss operations.

Hettenbach noted that “any reduction in those risks could lead to a strong reband in the heavily shorted stock.”

Background on Compounded Drugs

Telehealth providers like Hims gained the ability to distribute lower-priced compounded alternatives of Novo and Eli Lilly weight-loss medications during supply shortage periods for branded products.

Those shortages subsequently resolved. Regulators anticipated compounding activities would cease, though certain telehealth companies continued operations by modifying dosages or formulations to distinguish their offerings from branded medications.

These actions placed Hims in Novo’s legal sights earlier this year.

The emerging agreement, pending confirmation, would fundamentally transform that dynamic — converting Hims from a market competitor into a distribution channel for Novo’s medications.

Novo’s Copenhagen-traded shares gained approximately 1% on the development as of early Monday trading.