Hims & Hers (HIMS) stock popped more than 20% in trading early Tuesday after Novo Nordisk (NVO) announced a partnership with it and other telehealth platforms to offer patients access to the blockbuster weight loss drug Wegovy.
Novo Nordisk’s stock was up about 3% in early trading.
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Patients will be able to access the popular GLP-1 through Novo Nordisk’s online pharmacy, NovoCare, directly from Hims & Hers and telehealth providers Ro and LifeMD.
In recent months, competitor Eli Lilly (LLY) has similarly opened its direct-to-consumer pharmacy to platforms and partnered with Ro to offer vials of Eli Lilly’s blockbuster weight loss drug Zepbound. Novo Nordisk’s partnership focuses on the injectable pens — the more popular form of the drug.
Hims & Hers said patients can access the drug along with support services through memberships for a bundled price of $599 per month. The deal comes just ahead of the company’s first quarter earnings report but will not be reflected in the report.
Two packages of five dosing pens each of a fictitious semiglutin drug used for weight loss (antidiabetic medication or anti-obesity medication). · aprott via Getty Images
The move could spell good news for both Hims & Hers and Novo Nordisk — for different reasons. Novo Nordisk has been pressured in competition with Eli Lilly in the obesity space, while Hims & Hers has faced questions about its business model as access to compounded products declined.
“Could be very helpful for both Companies and we believe NVO benefits as it has been losing share almost every week to LLY in the obesity market,” wrote Mizuho healthcare sector expert Jared Holz in a note to clients Tuesday.
Hims & Hers stock has seen sharp declines, down 45% since reporting earnings earlier this year, as a result of trading on access to compounded GLP-1s. It and several other telehealth platforms, including Ro, have been caught in the tug-of-war between compounding pharmacies and the GLP-1 drugmakers.
Compounders were allowed to provide copycats of the branded drugs when Eli Lilly’s and Novo Nordisk’s drugs were in short supply. The FDA has since declared the shortage over, and compounders are suing to continue offering the products.
“The stock is beginning to look interesting following a sharp correction. Key to reversing negative sentiment will be demonstrating continued momentum in the core and gaining visibility into weight loss revenue,” Morgan Stanley analysts wrote in a note to clients Tuesday, based on app downloads and web traffic.
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Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem.
