To The Moon

$Hims & Hers Health Inc.(HIMS)$ $Novo-Nordisk A/S(NVO)$

Shares of Hims & Hers Health (NYSE: HIMS) are down 32% in a single day, following news that pharmaceutical giant Novo Nordisk (NVO) has ended their partnership. For some investors, this may seem like a devastating blow. And as expected, critics are quick to resurface, pointing fingers and saying, “This is what happens when you follow some guy on YouTube.”

But before jumping to conclusions, let’s take a step back.

Despite today’s drop, HIMS stock is still up more than 70% year-to-date. Most companies can’t claim that kind of performance. I’ve been covering this stock since 2022, and even at the beginning of this year—when it was trading at just $7—I highlighted it as a potential double in 2025. That thesis actually materialized earlier than expected, before this recent reversal.

However, this is no ordinary pullback. Today’s developments are serious, and they deserve an honest analysis.

What Happened Between HIMS and Novo Nordisk?

In a surprise move, Novo Nordisk terminated its partnership with Hims & Hers—just months after the two companies had expanded their deal to include direct sales of Wegovy, Novo’s popular GLP-1-based weight-loss drug.

Novo’s reasoning? They allege that Hims & Hers violated federal law by mass-selling compounded versions of GLP-1 drugs (custom formulations based on semaglutide or similar compounds) under a misleading banner of “personalization.” In their view, this not only breaks the law but also endangers patient safety.

In addition, Novo accused Hims of deceptive marketing tactics and suggested that their practices could be placing millions of consumers at risk.

So Why Now?

That’s the big question.

The supposed issues cited by Novo were likely already present when the partnership was initiated. But recently, Novo Nordisk brought in a new CEO—and with that comes a new strategic direction. As competition in the GLP-1 market intensifies and lower-cost alternatives, such as HIMS’ compounded offerings, gain traction, Novo appears to be drawing a line in the sand.

And make no mistake—Novo has skin in the game. These low-cost compounded versions of GLP-1 drugs are eroding their pricing power. Hims offered an alternative for $200–$400/month versus the $1,000+ price tags on branded drugs. Novo has already reduced its own guidance, in part due to pressure from this emerging wave of competitors.

Ironically, even Novo’s stock fell about 5% after announcing the split—suggesting that shareholders may not support this decision to abandon one of the most innovative and fastest-growing digital health platforms in the U.S.

Hims Responds

In a firm statement, Hims & Hers CEO Andrew Dudum pushed back, stating:

“We are disappointed to see Novo’s management misleading the public.”

Dudum claimed that Novo’s commercial team had been pressuring HIMS to funnel patients toward Wegovy, regardless of clinical necessity. Hims, according to Dudum, refused to be strong-armed by Big Pharma and rejected what they see as anti-competitive demands.

This is not dissimilar to the stance taken earlier by Eli Lilly. Lilly warned all telehealth companies: if you continue selling compounded GLP-1 drugs, you won’t get a partnership with us. HIMS made its choice then, and it seems it’s making the same choice now: stand with the consumer and retain pricing flexibility.

Should Investors Be Concerned? Let’s Break It Down

1. Revenue Risk? Limited.

There’s a popular misconception floating around: that 50% of HIMS’ revenue comes from compounded GLP-1 injectables. That may have been directionally true in 2024, but we’re in 2025 now—and the numbers tell a different story.

Hims is expected to generate $2.4 billion in revenue this year, with weight-loss products contributing roughly $725 million—or around 30% of total revenue. However, the compounded GLP-1 injectables only represent about $300 million of that estimate. That’s about 12–15% of total revenue.

The rest of the weight-loss business includes highly successful, FDA-compliant oral pills, which cost just $69/month and have no regulatory baggage. There’s also the recently launched GLP-1 pill “Leggide,” which is seeing early traction.

So, while this fallout with Novo may impact one part of HIMS’ revenue stream, it doesn’t invalidate the broader business model.

2. Legal Risk? More Concerning.

The real worry here isn’t lost revenue—it’s the potential legal exposure. A prolonged court battle or regulatory scrutiny could weigh on investor sentiment, damage the brand, and increase compliance costs.

From day one, I’ve said that HIMS’ partnerships with Big Pharma players like Novo were less about financial upside and more about legal insulation. Aligning with established players helps shield smaller disruptors from government scrutiny and litigation.

With that protection now gone, the company may become a legal target. While there is no lawsuit yet, I believe the probability of legal action by Novo is now significantly higher.

Still, it’s important to remember that an accusation is not a conviction. Even if a suit is filed, it doesn’t mean HIMS is guilty or will be penalized. And knowing this management team, I’d be surprised if they knowingly crossed legal lines just to boost short-term sales.

This is a founder-led business, with a long-term vision and a highly capable executive team. If they’ve made mistakes, they’ll need to answer for them. But if they haven’t, this could become another bump in the road—like the short report in 2023.

Let’s Not Forget 2023

For those who’ve followed HIMS longer-term, this isn’t the first time the company has faced existential fear.

In 2023, the stock crashed 53% following a damning short-seller report alleging medical malpractice and shady marketing. HIMS conducted a full internal review, found no wrongdoing, and moved forward. The result? The stock rebounded more than 200% within a few months.

This company has a pattern of violent price swings—+100%, -50%, then +150% again. Volatility is part of the DNA here. And if you’re a shareholder, it’s something you need to be mentally and emotionally prepared for.

Where I Stand as a Shareholder

So, what am I doing?

I haven’t sold my shares. I haven’t added to my position yet either—but that’s only because I already hold a substantial stake. I may add more depending on how things evolve.

I still believe HIMS is one of the most promising, disruptive healthcare companies in the U.S.—bringing down costs, increasing accessibility, and changing the way patients interact with medicine.

This situation is fluid. If it turns out that HIMS has knowingly broken the law or engaged in unethical practices, I’ll revisit my thesis. But so far, there’s no concrete evidence pointing to illegal activity—just the noise and friction that come from shaking up a multi-billion-dollar industry.

Final Thoughts

The market often reacts sharply to uncertainty—and that’s exactly what we’re seeing now. But volatility does not equal failure, especially not in the short term.

If you're investing in high-growth disruptors, these moments are part of the journey. And for those who can weather the storm, they often represent opportunity—not just risk.

I’ll continue watching the story closely and will update my views as new information comes in. But as of now, I remain bullish on the long-term potential of Hims & Hers Health.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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