To The Moon

$Novo-Nordisk A/S(NVO)$ $Hims & Hers Health Inc.(HIMS)$ Earlier this year, when Novo Nordisk filed a lawsuit against telehealth platform Hims & Hers (HIMS), the market widely believed the latter’s good days were numbered. However, the plot took a dramatic 180-degree turn shortly after—Novo Nordisk not only dropped the lawsuit but also announced a partnership with Hims & Hers, agreeing to introduce its branded weight-loss drugs to the platform for sale at low prices.

Fueled by this news, Hims & Hers’ stock surged 40% on Monday, marking one of its largest single-day gains in history.

From Lawsuit to Partnership: A Turbulent Feud

The relationship between Hims & Hers and Novo Nordisk has been full of twists and turns. The two companies briefly established a commercial partnership last year, but Novo Nordisk soon withdrew, citing Hims’ failure to fulfill the agreement and continued illegal sale of compound versions of its drugs under the guise of "personalized customization." At the time, Hims was legally selling compound drugs because Novo Nordisk’s semaglutide (the active ingredient in Wegovy and Ozempic) was listed as in short supply by the FDA. However, the FDA announced in February 2025 that the drug was no longer in shortage, and tensions quickly escalated.

Hims has always maintained that selling personalized versions of the drug is both legally justified and in the interest of patients. When the partnership collapsed, Hims stated that Novo Nordisk had attempted to "coerce" the company into selling branded drugs, and that it would not be manipulated. In November last year, as Novo Nordisk launched an oral formulation of Wegovy, the two sides restarted negotiations but failed to reach an agreement. In February this year, when Hims announced plans to sell a low-cost version of oral Wegovy, Novo Nordisk filed a lawsuit directly, accusing it of patent infringement. Subsequently, the FDA began pressuring compound drug companies, forcing Hims to stop selling the generic version of oral Wegovy.

For this reason, the current settlement and partnership have taken investors by surprise. Under the new agreement, Hims will offer Ozempic injections and oral Wegovy on its platform, while still being able to provide personalized compound semaglutide to patients when necessary, but will no longer advertise it. Novo Nordisk, in turn, has dropped all lawsuits.

Market Celebration: The Biggest Uncertainty Lifted

Behind the stock price surge is the market’s positive response to the elimination of Hims & Hers’ core risk. For a long time, the legal dispute with Novo Nordisk has been regarded as the Sword of Damocles hanging over Hims. Now, this cloud has lifted and the two sides have become allies, fully demonstrating the influence and channel value of Hims’ platform.

Although the new partnership may lower Hims’ gross profit margin (selling branded drugs is less profitable than selling self-produced compound drugs), its growth prospects have received strong support. Analysts point out that obtaining official authorization from Novo Nordisk means Hims can legally and stably provide the most popular GLP-1 drugs, which is crucial amid the explosive demand in the weight-loss drug market.

Valuation Still Has Room, But Chasing Highs Is Not Advised

After the sharp rise, the question on investors’ minds is: Is it too late to buy Hims now? From a valuation perspective, Hims is not expensive. Based on analysts’ earnings forecasts for 2026, the stock’s forward price-to-earnings ratio is less than 20x; based on 2027 expectations, it is even lower than 15x. Meanwhile, the company’s growth remains strong, with the latest quarterly revenue increasing 28% year-on-year and significant room for international expansion.

However, given the volatility of the two sides’ past relationship, investors still need to exercise caution. Whether this partnership can be long-lasting and stable remains to be seen. If the cooperation progresses smoothly, the long-term upside potential is still considerable. In short, from bitter rivals to strong allies, Hims & Hers has proven its resilience in the telehealth and weight-loss drug sectors with a stunning reversal. Novo Nordisk’s decision to put aside its pride and embrace the platform also reflects the pragmatic attitude of pharmaceutical giants when facing new types of channels.

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