Why Hims & Hers Health (HIMS) Is Down 10.2% After Novo Nordisk Ends Weight-Loss Drug Partnership

• In August 2025, Novo Nordisk ended its partnership with Hims & Hers Health over the promotion and sale of compounded GLP-1 weight-loss drugs and instead announced a new collaboration with GoodRx to offer FDA-approved Ozempic and Wegovy at a competitive monthly price. This move not only heightened legal and regulatory risks for Hims & Hers but also intensified competitive pressure in the telehealth weight loss market.
• GoodRx’s partnership with Novo Nordisk highlights how innovative collaborations can swiftly shift industry access and competitive positioning for telehealth and digital pharmacy providers.
• We'll examine how the loss of Novo Nordisk's partnership and added legal concerns may alter Hims & Hers' growth outlook and business profile.

Find companies with promising cash flow potential yet trading below their fair value.

Hims & Hers Health Investment Narrative Recap

To hold Hims & Hers Health stock, an investor typically needs to believe that digital health adoption, new product category expansion, and high customer retention will outweigh risks from intense competition and regulatory pressures, particularly in weight loss offerings. The latest Novo Nordisk and GoodRx alliance brings immediate focus to regulatory and legal compliance around GLP-1 drugs, which now stands as both the main short-term catalyst and primary risk; these developments could materially affect growth and reputation in the near term.

Most relevant to these events, the termination of Hims & Hers' partnership with Novo Nordisk and active lawsuits regarding compounded drug promotion now place significant emphasis on its ability to maintain regulatory compliance. These challenges heighten the importance of execution on alternative product launches and expanding into non-GLP-1 categories to support ongoing subscriber growth and revenue stability.

But equally important for investors: while regulatory risk now dominates headlines, other underlying challenges remain that should not be ignored, including ...

Read the full narrative on Hims & Hers Health (it's free!)

Hims & Hers Health's outlook suggests revenues of $3.3 billion and earnings of $261.3 million by 2028. This scenario assumes an 18.3% annual revenue growth and a $67.7 million increase in earnings from the current $193.6 million.

Uncover how Hims & Hers Health's forecasts yield a $49.45 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Forty-seven distinct fair value views from the Simply Wall St Community put Hims & Hers between US$17.15 and US$97.04 per share. Persistent regulatory and legal scrutiny in GLP-1 offerings may impact performance far beyond current valuations, so you should consider a wide range of opinions.

Explore 47 other fair value estimates on Hims & Hers Health - why the stock might be worth less than half the current price!

Build Your Own Hims & Hers Health Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hims & Hers Health research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Hims & Hers Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hims & Hers Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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