Key Takeaways
- Shares of HIMS climbed 7% following the announcement of Eli Lilly’s Zepbound and additional GLP-1 medications on its platform
- Platform clinicians gained access to prescribe Zepbound vials, KwikPen, and Foundayo through LillyDirect pharmacy
- The expansion builds on a previous agreement with Novo Nordisk for Wegovy injections and oral formulations
- J.P. Morgan launched coverage with an “Overweight” designation and established a $35 share price objective
- The bank forecasts revenues climbing from $2.3B in 2025 to surpass $3.2B by 2027, with EBITDA reaching $414M
Shares of Hims & Hers Health soared 7% Thursday following the telehealth provider’s announcement that it would broaden its offerings to incorporate Eli Lilly’s weight management medications.
Hims & Hers Health, Inc., HIMS
Medical professionals utilizing the Hims & Hers network now have the capability to prescribe Zepbound vials, KwikPen devices, and Foundayo. Patients can obtain these prescriptions via the LillyDirect pharmacy network, with direct-pay pricing structures accessible to Hims & Hers users.
The integration provides licensed healthcare providers on the platform with streamlined access to deliver FDA-sanctioned GLP-1 treatment options to their patients.
This collaboration comes on the heels of a partnership revealed last month with Novo Nordisk. That agreement enabled Hims & Hers subscribers to obtain Wegovy injectable medications and oral alternatives.
Combined, these two strategic agreements signal a decisive transformation in the firm’s approach to weight management services in the United States. Company leadership attributes this evolution to escalating consumer interest and shifting marketplace conditions surrounding GLP-1 pharmaceutical products.
The comprehensive weight management program encompasses round-the-clock care team availability, customized nutritional guidance, ongoing clinical monitoring, and community-based support through its Weight Loss member network.
According to Hims & Hers, the objective is to deliver diverse therapeutic solutions customized to each patient’s unique medical background and wellness objectives.
J.P. Morgan Launches Coverage With Positive Outlook
The equity received additional momentum Friday when J.P. Morgan began coverage with an “Overweight” designation and established a $35 share price objective.
The firm’s analysts highlighted the Novo Nordisk collaboration as a pivotal development for the company’s weight management division, noting it minimizes regulatory exposure associated with compounded GLP-1 products while expanding access to brand-name therapeutics.
J.P. Morgan anticipates HIMS will surpass 100,000 Wegovy prescriptions monthly, which would generate an annualized revenue stream of approximately $350–$400 million from that single product line.
The investment bank also identified peptide-based treatments as a significant long-term expansion avenue. With U.S. regulatory authorities potentially approving large-scale compounding of multiple peptides, Hims & Hers’ proprietary manufacturing capabilities could position it favorably.
Financial Projections and Expansion Trajectory
J.P. Morgan anticipates revenue expansion from $2.3 billion in 2025 to beyond $3.2 billion by 2027, with EBITDA ascending to $414 million. Management has set internal targets of exceeding 20% annual revenue growth extending through 2030.
Revenue acceleration is anticipated to resume during the latter portion of 2026 as emerging specialty areas mature and branded product offerings enhance customer profitability metrics.
Nonetheless, challenges persist. The equity represents one of the most heavily shorted securities within its sector. Market participants express apprehension regarding decelerating expansion, escalating customer acquisition expenses, and competitive pressure from Amazon and rival telehealth provider Ro.
J.P. Morgan recognized these headwinds but concluded the present market valuation inadequately captures the organization’s expansion trajectory.
HIMS currently services roughly 2.5 million subscribers spanning weight management, sexual wellness, and dermatological categories. Its fully integrated business model — encompassing medical practitioners, dispensing facilities, and production operations — was underscored by J.P. Morgan as a fundamental competitive differentiator.
At the time of publication, Novo Nordisk (NVO) had advanced 5.53% while Eli Lilly (LLY) had declined 2.84% during the trading session.
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