Shares of Hims & Hers Health (HIMS 5.22%) skyrocketed after the telemedicine platform came to an agreement with Novo Nordisk (NVO 1.88%) to sell the drugmaker's popular GLP-1 weight loss drugs. The question on many investors' minds is whether it is too late to buy the stock. Let's take a closer look.
NYSE: HIMS
Key Data Points
Letting bygones be bygones
Hims & Hers and Novo Nordisk have had a tumultuous relationship over the past couple of years. The companies formed a short-lived commercial partnership last year, only for Novo Nordisk to walk away, saying that Hims had not lived up to its end of the bargain by continuing to illegally sell compounded versions of its drugs under the guise of personalization.
Hims had legally been able to sell the compounded drugs when semaglutide, the main ingredient in Novo's Wegovy and Ozempic drugs, was in shortage. However, the FDA declared the drug was no longer in shortage in February 2025. Hims had long contended that it had the legal right to sell personalized versions of these drugs and that it was best for patients. At the time of the breakup, the company said that Novo Nordisk was pressuring it to sell the branded version of its drugs and that it would not be "strong-armed."
The two companies later entered talks to sell Wegovy last November, as Novo Nordisk rolled out a new pill form of the drug. However, a deal never came to fruition, and Novo Nordisk sued Hims in February of this year after the telehealth company announced plans to sell a lower-cost version of the Wegovy pill. While Hims argued its personalized dose version could help better manage side effects, the FDA started pressuring compounding drug companies over weight loss drugs, leading Hims to discontinue selling its copycat version of the Wegovy pill.
As such, the new deal with Novo Nordisk came as quite a surprise to investors. Hims will now offer Ozempic injections and Wegovy pills on its platform. It will still provide some personalized compound semaglutide drugs to patients when medically necessary, but it will no longer advertise this option on its platform or in its marketing. Meanwhile, the lawsuit will be dropped.
Image source: Getty Images.
Is it too late to buy Hims stock?
The agreement with Novo Nordisk and the end of the lawsuit remove one of Hims's biggest overhangs. The fact that Novo Nordisk was willing to go back to the company also illustrates the reach of Hims' platform. This should help drive growth, although it will come at a lower gross margin.
Even after its jump in stock price, Hims is still not expensive, trading at a forward price-to-earnings ratio of under 20 times based on the analyst consensus for 2026 and below 15 times based on 2027 estimates. It's still growing quickly, with revenue climbing 28% last quarter, and it has a strong international expansion opportunity ahead. However, given the volatile nature of its past relationship with Novo Nordisk, investors shouldn't go overboard with the stock and should consider only smaller positions. Still, if the deal sticks, there could be more long-term upside ahead.
