Hims (HIMS) Stock Explodes 44% After Novo Nordisk Flips From Foe to Partner

TLDR

• Hims & Hers (HIMS) stock surged over 44% in premarket trading Monday after Bloomberg reported Novo Nordisk plans to sell weight-loss drugs on its platform
• The two companies could announce the partnership as early as Monday
• The deal marks a reversal after Novo sued Hims in February over a copycat version of its oral Wegovy pill
• Leerink analyst Michael Cherny called it “both a surprise and an unabashed positive for HIMS’ stock” but kept a Market Perform rating
• Morgan Stanley’s Craig Hettenbach said the deal could ease legal and regulatory risks that had been weighing on the heavily shorted stock

Hims & Hers Health (HIMS) stock jumped more than 44% in premarket trading on Monday after Bloomberg reported that Novo Nordisk is planning to sell its weight-loss drugs through the Hims platform.

The report said an official announcement could come as early as Monday. The news sent HIMS rocketing higher, while Novo’s Copenhagen-listed stock climbed around 1%.

Hims & Hers Health, Inc., HIMS

This is a sharp turnaround for a stock that had already fallen about 51% this year before Monday’s move.

The deal would allow Novo’s obesity treatments — including drugs tied to its Ozempic and Wegovy brands — to be offered directly on the Hims platform. That’s a big shift given the bad blood between the two companies in recent months.

Novo sued Hims in February after the telehealth company launched a copycat version of Novo’s oral Wegovy weight-loss pill. Novo argued the product infringed on patents tied to its blockbuster medications.

The lawsuit was just the latest clash between them. Novo had previously accused Hims of continuing to market compounded versions of its drugs even after the two had an earlier falling out.

Analyst Reaction

Morgan Stanley analyst Craig Hettenbach took a similar view. He said the partnership could ease one of the biggest overhangs on HIMS — the regulatory and legal risks tied to its weight-loss business.

Background on Compounded Drugs

Telehealth companies like Hims were able to sell lower-cost compounded copies of Novo and Eli Lilly weight-loss drugs during a period when branded supplies were short.

Those shortages have since ended. Regulators expected compounding to stop, but some telehealth companies kept going by tweaking dosages or ingredients to try to differentiate their products from the branded versions.

That’s what put Hims in Novo’s crosshairs earlier this year.

The new agreement, if confirmed, would essentially flip that relationship — turning Hims from a competitor into a distribution partner for Novo’s drugs.

Novo’s Copenhagen-listed stock was up around 1% on the news as of early Monday morning.

The post Hims (HIMS) Stock Explodes 44% After Novo Nordisk Flips From Foe to Partner appeared first on CoinCentral.