NEW YORK, March 11, 2026, 09:16 EDT
Hims & Hers Health shares surged 5.9% to finish at $23.47 on Tuesday, building on a two-day rally that’s now hit roughly 49%. The telehealth firm had closed at $15.74 back on March 6, then soared to $22.16 at Monday’s close. During Tuesday’s session, the stock swung from $22.43 up to $26.03 before easing back to settle below its session peak, following news of a fresh distribution deal with Novo Nordisk. Hims Inc.
This rebound is notable: Hims was squeezed by regulators and Novo, but now there’s relief. Novo pulled its lawsuit, at least for now—it can bring it back if needed—removing a big cloud hanging over the company. The deal pushes Hims away from compounded GLP-1s—those pharmacy-mixed obesity treatments—and onto branded, FDA-approved drugs instead. Reuters
Analysts rushed to adjust their ratings after the agreement landed. Needham’s Ryan MacDonald bumped Hims up to buy, setting a $30 price target and calling the deal a “fundamental” shift in its weight-loss offering. Citi’s Daniel Grosslight took the stock from sell to neutral, targeting $24. BofA’s Allen Lutz did the same move—neutral from underperform, with a $23 target. Deutsche Bank’s George Hill held steady on his recommendation but increased his target to $28. Yahoo Finance
Hims expects to add Ozempic injections and both pills and injections of Wegovy to its platform before the month is out, offering them at Novo’s self-pay rates. Advertising for compounded GLP-1s will end, while compounded semaglutide sticks around just for the small group of patients whose providers deem it medically needed. Hims Inc.
Hims CEO Andrew Dudum pointed to “tremendous growth opportunities” in branded GLP-1s, telling Reuters the decision lines up with a surge in demand for more affordable branded choices. “That’s where we see growth in the business,” he said. Hims Inc.
Analysts pointed out the deal removes the biggest legal headache for now. David Larsen at BTIG argued Novo had a solid case against Hims, saying the agreement cuts down risk from potential FDA or Justice Department moves. Truist’s Jailendra Singh added that both parties were still tied together by “mutual necessity.” Reuters
The field remains packed. Novo faces stiff competition from Eli Lilly in the obesity drug race, and according to Novo chief Mike Doustdar, telehealth partnerships are accelerating the rollout of the Wegovy pill. That drug pulled in over 600,000 prescriptions in just two months. Novo has also slashed website prices on its weight-loss offerings, dropping them from roughly $1,000 a month down to between $149 and $299. Reuters
The rally isn’t without complications. Analysts speaking with Reuters noted branded products could give revenue a boost, but margins might take a hit compared to compounded drugs. Citi figures Hims would have to secure about 70% more branded subscriptions just to make up for lost revenue as it scales back on compounded sales. Deutsche Bank, not as negative, still pointed to unresolved issues with pricing and execution. Reuters
The regulatory cloud still hangs over the company. According to Reuters, Hims found out in February about an SEC probe. Analysts warn that fresh U.S. expenses and international moves could further muddy a 2026 outlook, which already signals the pace is slowing. Hims has projected revenue growth topping 15% this year, following the 59% jump it reported for 2025. Reuters
The debate has narrowed in just a week. Now, it’s not about Hims’ ability to scale — that’s taken for granted — but whether sales of branded drugs pick up pace quickly enough to make up for slimmer margins per prescription. Reuters
