TLDR
- HIMS stock jumped 16% Wednesday, extending month-long gains of over 35% despite recent setbacks
- Novo Nordisk ended partnership with Hims & Hers, cutting off direct access to Wegovy weight-loss drug
- Company faces investor lawsuits related to the terminated Novo Nordisk partnership
- Truist Securities raised price target to $48 while maintaining Hold rating
- Stock has gained 186% year-over-year and plans Canadian expansion for 2026
Hims & Hers Health stock climbed 16% Wednesday, closing at $58.02 in a trading session that saw shares bounce between $49.80 and $59.16. The surge adds to an impressive month-long rally that has pushed the stock up more than 35%.
The recent gains come despite some challenging developments for the telehealth company. In late June, Novo Nordisk announced it would end its partnership with Hims & Hers, effectively cutting off the company’s direct access to Wegovy through the NovoCare Pharmacy.
Novo Nordisk didn’t mince words in explaining the split. The pharmaceutical giant accused Hims & Hers of violating laws that ban large-scale sales of compounded drugs disguised as “personalized” treatments.
The company also claimed Hims & Hers used misleading marketing while ignoring patient safety concerns. Dave Moore, executive vice president of Novo Nordisk’s U.S. operations, stated the company was “firm on our position and protecting patients living with obesity.”
Initially, the partnership termination sent shares lower. But the stock quickly recovered and has continued climbing since then.
Legal Troubles Mount
The Novo Nordisk situation has spawned additional headaches for Hims & Hers. The company now faces investor lawsuits connected to the ended partnership.
These legal challenges haven’t deterred the stock’s momentum. Shares have surged 186% over the past year, reaching a 52-week high of $72.98.
The current trading level puts HIMS well above its 52-week low of $13.47. Market capitalization now sits around $12.5 to $13 billion.
Despite the legal clouds, Wall Street analysts remain largely optimistic. Most maintain “buy” ratings on the stock.
Last week, Truist Securities analyst Jailendra Singh kept his Hold rating but bumped up the price target from $45 to $48. The consensus price target across all analysts sits at $31.28, with individual targets ranging from $10 to $68.
Growth Plans Continue
Hims & Hers isn’t letting the Novo Nordisk setback slow down expansion plans. In early July, the company announced it would bring its weight loss program to Canada in 2026.
The Canadian expansion represents another step in the company’s telehealth growth strategy. Hims & Hers operates in both prescription and non-prescription wellness markets.
The company has particularly focused on GLP-1 weight-loss medication subscriptions as a key growth driver. This focus has made partnerships with drug manufacturers like Novo Nordisk especially valuable.
Trading metrics show the stock carries a P/E ratio between 72.79 and 85.32. The company doesn’t pay a dividend, typical for a growth-focused business.
Volatility has been a constant companion for HIMS shares. The stock’s sharp moves often correlate with news about weight-loss drugs and regulatory developments.
High growth expectations continue to drive investor interest despite the recent challenges. Analysts expect strong future earnings per share as telehealth adoption expands.
The next earnings report is scheduled for August 4, 2025, which should provide more clarity on how the Novo Nordisk partnership loss affects business results.
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