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Key Stats for HIMS Stock
- Price Change for HIMS stock: -35%
- Current Share Price: $42
- 52-Week High: $73
- HIMS Stock Price Target: $50
What Happened?
Hims & Hers Health (HIMS) stock crashed 35% following Novo Nordisk’s abrupt termination of their partnership to distribute Wegovy through the telehealth platform.
The Danish pharmaceutical giant accused Hims & Hers of violating laws by continuing to sell compounded versions of semaglutide (Wegovy’s active ingredient) under what Novo called the “false guise of personalization.”
Novo Nordisk stated that Hims & Hers had “failed to adhere to the law which prohibits mass sales of compounded drugs” and accused it of “disseminating deceptive marketing that put patient safety at risk.”
The partnership, announced just two months ago, was part of Novo’s strategy to expand Wegovy access through telehealth channels after FDA-declared shortages ended.
CEO Andrew Dudum fired back on social media, claiming Novo’s commercial team had “increasingly pressured us to control clinical standards and steer patients to Wegovy regardless of whether it was clinically best for patients.”
He accused Novo of “anti-competitive demands that infringe on the independent decision making of providers and limit patient choice.”
The dispute centers on compounding practices, the preparation of custom medications using active ingredients that replicate patented medicines.
While compounded drugs were legally allowed during FDA-declared shortages of GLP-1 medications, the practice has continued post-shortage under “personalization” exemptions for patients requiring dosage adjustments due to tolerability or allergies.
See HIMS’ full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
The partnership collapse comes at a particularly challenging time for HIMS stock, which faces broader headwinds beyond the GLP-1 controversy.
Revenue growth has decelerated from 45% in Q3 of 2024 to 29% in Q1 of 2025, while new FTC rules taking effect in July will simplify subscription cancellations, potentially increasing churn rates.
What the Market Is Telling Us About HIMS Stock
The 35% plunge in HIMS stock reflects investor concerns about both the immediate revenue impact and longer-term regulatory risks facing Hims & Hers’ business model.
Despite the decline, HIMS stock is up 74% year-to-date, indicating the market had previously priced in significant growth expectations that are now being reassessed.
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The partnership termination exposes the precarious nature of Hims & Hers’ position in the GLP-1 market.
While the company has built a substantial weight loss business generating hundreds of millions in revenue, it operates in a regulatory gray area that pharmaceutical companies and regulators are increasingly scrutinizing.
Novo’s public accusations about “mass sales” under false personalization claims could invite additional regulatory attention.
However, Hims & Hers’ diversified platform provides some insulation from GLP-1-specific risks. Its core specialties in dermatology, sexual health, and mental health continue to show strong growth, with over 80% of dermatology subscribers utilizing personalized solutions.
Bank of America analyst Allen Lutz highlighted hormone replacement therapy as a potential $3-10 billion market opportunity that could add $4-12 million in revenue in 2025.
The company’s international expansion, as demonstrated by the acquisition of London-based Zava, showcases strategic diversification beyond U.S. regulatory challenges.
Management’s confidence in achieving $6.5 billion in revenue and $1.3 billion in EBITDA by 2030 suggests a belief in the platform’s long-term viability, extending beyond any single partnership or specialty.
For Novo Nordisk, the termination of the partnership reflects broader challenges as competition intensifies in the obesity treatment market.
NVO stock has declined by more than 50% over the past year, amid concerns about pipeline strength and market share losses to Eli Lilly. The failed Hims partnership undermines Novo’s telehealth distribution strategy and highlights the complexities of working with platforms that offer competing products.
The controversy also highlights the ongoing tension between pharmaceutical companies seeking to protect branded drug revenues and telehealth platforms that democratize access to treatments.
As the debate over compounding continues, regulatory clarity will be crucial for determining which business models can survive and thrive in the evolving digital health landscape.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
