NEW YORK, March 13, 2026, 09:49 EDT
Hims & Hers Health traded flat around $23.82 early Friday in New York, sticking close to Thursday’s finish. All this after a volatile week triggered by news of the telehealth firm’s obesity-drug partnership with Novo Nordisk. The market’s initial relief rally has faded, leaving investors to figure out what kind of earnings this new setup actually delivers.
That’s significant: Hims is overhauling its U.S. weight-loss strategy just as regulators clamp down on compounded products. With the move outlined this week, the company plans to focus more on branded GLP-1 drugs—a group of diabetes and obesity treatments that imitate a gut hormone—and dial back its wide marketing of compounded versions, pharmacy-made alternatives that haven’t gone through FDA review.
Novo on Monday agreed to allow Hims to offer FDA-approved Wegovy and Ozempic at Novo’s self-pay prices through the Hims platform, resolving a patent dispute that flared after Hims rolled out a $49 generic version of Novo’s obesity medication. Hims is dropping advertising for compounded GLP-1s, but will still be able to provide them in certain situations if a provider deems them medically necessary.
Andrew Dudum, chief executive at Hims, pointed out to Reuters that demand is moving toward more branded choices, saying, “That’s where we see growth in the business.” BTIG’s David Larsen noted the partnership helps “reduce risk related to potential FDA and DOJ enforcement actions against HIMS.” Reuters
Still, the overhaul might not pay off like before. Analysts note that branded drugs generally fetch thinner margins than compounded meds. Citi, in comments picked up by MarketWatch, estimates Hims would have to secure roughly 70% more branded subscriptions just to make up for the lost profit.
The compounding sector is still under the gun. On Thursday, Eli Lilly flagged a new impurity discovered in compounded tirzepatide products combined with vitamin B12 and urged a recall. Last week, the FDA sent warning letters to 30 telehealth companies over misrepresenting compounded GLP-1 drugs.
That’s a tough setup for Hims, especially with investors already picking apart the company’s short-term growth story. Back in late February, Hims put out a first-quarter revenue forecast of $600 million to $625 million—well shy of the $653.11 million analysts were looking for. Still, the company said it expects full-year 2026 revenue to land between $2.7 billion and $2.9 billion, after posting a 59% jump in 2025 sales to around $2.35 billion.
Legal risk might be less of a worry, but execution remains the big unknown. “A lot of question marks” are still hanging over litigation and possible regulatory shifts, Morningstar’s Kadyn Kim pointed out last week. Over at Leerink, Michael Cherny made it clear: the future of the stock depends on how Hims steers its weight-loss segment. Reuters
Novo is slashing prices for cash-paying customers and doubling down on telehealth, ramping up the rivalry with Eli Lilly in the obesity drug market. For Hims, it’s not so much about settling disputes now—it’s about convincing investors that a branded distribution agreement can keep the growth story alive, even if those hefty margins from compounded drugs are off the table.
