TLDR:
- HIMS stock surged 23% to $35.04 following a deal to sell Novo Nordisk’s weight-loss drug Wegovy
- Patients can access Wegovy through Hims’ telehealth platform for $599 monthly (includes membership)
- The deal helps Hims navigate FDA’s removal of semaglutide from the shortage list
- Company also recently announced it would sell Eli Lilly’s Zepbound
- Quarterly earnings expected at $0.14 per share, representing 180% year-over-year growth
Hims & Hers Health (HIMS) stock jumped 23% in the last trading session, closing at $35.04. The price surge happened on Tuesday with unusually high trading volume.
The telehealth company’s stock movement comes after announcing a key partnership with pharmaceutical giant Novo Nordisk.
This new deal allows Hims & Hers to sell the popular weight-loss drug Wegovy through its online platform. U.S. customers will be able to access NovoCare Pharmacy directly through the Hims website.
The pricing structure bundles all dose strengths of Wegovy with a Hims & Hers membership for $599 per month. This creates a new revenue stream for the telehealth provider.
For Hims & Hers, this partnership represents a strategic pivot. Previously, the company had built a business selling compounded versions of semaglutide, Wegovy’s active ingredient.
The FDA had recently removed semaglutide from its drug shortage list. This regulatory change meant pharmacies could no longer sell compounded versions of the medication.
Beyond Weight Loss Drugs
The collaboration appears to be just the beginning of a deeper partnership between the two companies.
Dave Moore, Novo Nordisk’s executive vice president of U.S. operations and global business development, indicated more joint initiatives are coming.
“Beyond this initial collaboration, the companies are developing a roadmap that combines Novo Nordisk’s innovative medicines with Hims & Hers’ ability to deliver access to quality care at scale,” Moore stated.
The goal, according to Moore, is “improving long-term outcomes for more people living with chronic disease, and doing that more affordably.”
Hims & Hers CEO Andrew Dudum expressed similar enthusiasm about the partnership. “We’ve always believed that if you center the customer, you can change the healthcare system,” he said in a statement.
The telehealth company is expanding its weight-loss medication offerings beyond just Wegovy. Hims & Hers recently announced it would also sell Eli Lilly’s Zepbound on its platform.
This move into weight-loss drugs comes as Hims & Hers prepares to announce quarterly earnings. Analysts expect the company to post earnings of $0.14 per share in its upcoming report.
If achieved, this would represent a year-over-year increase of 180%. Revenues are projected to reach $537.85 million, up 93.4% from the same quarter last year.
The company’s stock currently carries a Zacks Rank #2 (Buy). Earnings estimate revisions have been trending upward, with the consensus EPS estimate for the quarter revised 21.3% higher over the last 30 days.
This positive trend in earnings estimates often correlates with continued price appreciation. In contrast to Hims & Hers’ recent success, competitor Health Catalyst (HCAT) has returned -10.4% in the past month.
The deal’s announcement had positive effects for both companies involved. While Hims stock soared 23%, Novo Nordisk shares also rose 4.1% to $65.16 in the same trading session.
Hims & Hers has been working to position itself as a major player in the telehealth space by securing partnerships with established pharmaceutical companies for in-demand medications.
The stock has experienced volatility over the past month, with the recent surge coming after a 3.6% loss over the previous four weeks.
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