New York, Feb 5, 2026, 14:52 EST — Regular session.
- Hims & Hers shares dropped roughly 3%, pulling back after earlier sharp swings during the session
- Company launches compounded semaglutide pills priced from $49 monthly, beating Novo’s new oral Wegovy on cost
- Traders brace for regulatory scrutiny as Hims gears up to report on Feb. 23
Shares of Hims & Hers Health dropped 3.2% to $23.63 Thursday afternoon, as the telehealth company expanded into the weight-loss drug market by launching a $49 compounded version of Novo Nordisk’s new Wegovy pill. The stock fluctuated between $22.98 and $29.44 on heavy volume.
This shift is significant as it pulls a consumer-focused platform into a battle typically dominated by major drug companies, attorneys, and regulators. Investors are weighing if Hims has carved out a lasting niche or if it’s just a fleeting headline.
The timing couldn’t be worse for the incumbents. Novo flagged this week that tougher competition and lower prices, particularly in the U.S., are beginning to take a toll. The company now anticipates declines in both sales and operating profit this year. (Reuters)
Hims announced it will offer the compounded pill at $49 for the first month, then $99 thereafter, for customers subscribing to a five-month plan—significantly undercutting Novo’s cash-pay price. The company framed the drug as personalized care overseen by clinicians, using a liposome-based method to aid absorption. Because compounded drugs are mixed by pharmacies, they skip the FDA’s usual approval process. Novo’s trials showed their pill led to over 16% weight loss. Hims CEO Andrew Dudum remarked, “More choice on the platform is the best thing for customers everywhere.” (Reuters)
Novo has made it clear it won’t accept this without a fight. The drugmaker has threatened legal and regulatory moves, claiming the mass compounding is illegal and poses safety risks. It also points to past FDA warnings about how compounded semaglutide is promoted in the U.S. (Financial Times)
Some investors view this as a fresh escalation in the pricing “arms race” over GLP-1 obesity drugs, while others worry enforcement could bring more downsides than gains. “It adds another level of uncertainty to the obesity investment story,” Markus Manns, portfolio manager at Union Investment, told Reuters. Meanwhile, Morningstar analyst Karen Andersen raised doubts about whether brand protections are actually being enforced. (Reuters)
For Hims, the bull case is clear: broaden access, maintain straightforward pricing, and make weight-loss a steady revenue stream. The challenge lies in execution — delivering results to customers, ramping up supply, and staying clear of regulators as branded competitors launch their own oral treatments.
The company is expanding beyond weight loss. On Wednesday, Hims announced it rolled out access to a multi-cancer early detection blood test from GRAIL, available through its Labs plans with a $250 discount off Galleri’s list price. The company also emphasized that the test is not FDA-approved. (Hims)
Hims’ CFO Oluyemi Okupe sold 5,262 shares on Feb. 3 at roughly $26.44 each, according to a Form 4 filing. The sale came through option exercises and happened under a Rule 10b5-1 plan, a prearranged insider trading program. (SEC)
The route from a low-cost offer to a reliable revenue stream is far from straightforward. A legal battle, an FDA clampdown, or changes in the agency’s stance on compounding could slam the door shut fast, leaving Hims stuck with a product it can’t promote or sell widely. Meanwhile, branded companies might hit back with deeper discounts, tightening the margin for imitators.
Investors are eyeing Feb. 23 as a key date, when Hims will release its fourth-quarter and full-year results after market close, followed by a conference call at 5 p.m. ET. The company’s management is also slated to speak at the Morgan Stanley Technology, Media & Telecom Conference on March 2. (Hims)
