Hims & Hers Partners with Novo Nordisk for Obesity Drug Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14 hours ago
0mins
Should l Buy HIMS?
Source: seekingalpha
- Stock Surge: Hims & Hers Health (HIMS) shares soared 44.5% in premarket trading to $22.71, reflecting strong market optimism regarding the potential partnership with Novo Nordisk (NVO) for obesity drug sales, indicating investor confidence in future growth prospects.
- Partnership Outlook: According to Bloomberg, the partnership between Hims & Hers and Novo Nordisk could be officially announced as early as Monday, aiming to leverage telehealth platforms for selling Novo's obesity drugs, marking a strategic integration in obesity treatment.
- Historical Context: The potential agreement follows a previous partnership collapse when Hims & Hers declined to stop selling lower-cost compounded versions of Novo's obesity drug, highlighting the company's strategic adjustments and market positioning.
- Regulatory Challenges: Hims & Hers recently withdrew plans to sell Novo's newly launched oral obesity therapy, Wegovy, due to regulatory scrutiny, which may impact its future market strategy and profitability.
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Analyst Views on HIMS
Wall Street analysts forecast HIMS stock price to rise
12 Analyst Rating
3 Buy
6 Hold
3 Sell
Hold
Current: 15.740
Low
16.50
Averages
32.95
High
60.00
Current: 15.740
Low
16.50
Averages
32.95
High
60.00
About HIMS
Hims & Hers Health, Inc. provides a consumer-first platform, which helps customers to fulfill their health and wellness needs. Its platform includes access to a provider network, a clinically focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. Its digital platform enables access to treatments for a range of chronic conditions, including those related to sexual health, hair loss, dermatology, mental health, and weight loss. It connects patients to licensed healthcare professionals who can prescribe medications when appropriate and prescriptions are fulfilled online through licensed pharmacies on a subscription basis. It also offers access to a range of health and wellness products designed to meet individual needs, which can include curated prescription and non-prescription products. Through its mobile applications, consumers can access a range of educational programs, wellness content, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hims & Hers Partners with Novo Nordisk for Weight-Loss Drugs
- Stock Surge: Hims & Hers Health closed at $22.15 on Monday, up 40.72%, primarily driven by the announcement of a collaboration with Novo Nordisk to sell GLP-1 weight-loss drugs, indicating strong market optimism for future growth.
- Volume Spike: The trading volume reached 168.1 million shares, about 557% above its three-month average of 25.6 million shares, reflecting heightened investor interest and increased market activity following the new partnership.
- Analyst Upgrades: Analysts at Needham and Citi raised their price targets for Hims & Hers to $30 and $24, respectively, signaling increased confidence in the company's future profitability, even as its stock remains down 62% from its 52-week high.
- Competitive Market Pressure: Despite the strong stock performance, the Motley Fool analyst team did not include Hims & Hers in their current list of top investment stocks, advising investors to carefully consider potential risks while pursuing high returns.
See More
Hims & Hers Partners with Novo Nordisk for Weight-Loss Drugs
- Stock Surge: Hims & Hers Health's stock soared 40.72% to close at $22.15 following the announcement of a partnership with Novo Nordisk, indicating strong market confidence in its growth potential.
- Volume Spike: Trading volume reached 168.1 million shares, approximately 557% above the three-month average of 25.6 million shares, reflecting heightened investor interest in the company's new strategy.
- Positive Market Reaction: Novo Nordisk dropped its patent infringement lawsuit against Hims & Hers, and the agreement to sell Novo's GLP-1 drug Ozempic on Hims & Hers' platform led to a significant stock price increase.
- Analyst Optimism: Analysts from Needham and Citi raised their price targets for Hims & Hers to $30 and $24, respectively, and although HIMS remains down 62% from its 52-week high, its risk-reward ratio is now more appealing.
See More
U.S. Stocks Close Higher Amid Oil Price Volatility
- Oil Price Impact: Oil prices spiked above $100 per barrel on Monday, causing early declines in stocks, but the market rebounded quickly after President Trump indicated the war might be nearing its end, with the S&P 500 closing up 0.71%, reflecting investor optimism about future developments.
- Economic Concerns: Despite the stock market recovery, last Friday's economic data raised concerns, with U.S. February payrolls falling by 92,000 and January retail sales declining by 0.2% month-over-month, potentially undermining confidence in economic recovery.
- Strong Earnings Performance: Over 95% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing support for the stock market and demonstrating corporate resilience amid economic uncertainties.
- Airline Stocks Rally: Following Trump's comments suggesting the Iran war might end soon, airline stocks such as United Airlines, Delta Air Lines, and American Airlines rose over 2%, indicating market expectations for a recovery in the airline industry.
See More
Citi Upgrades Hims & Hers to Neutral Amid Novo Nordisk Deal
- Rating Upgrade: Citi upgraded Hims & Hers Health from sell to neutral, primarily due to the agreement with Novo Nordisk for GLP-1 drug sales, which mitigates several risks facing the company and reflects a renewed market confidence in its future performance.
- Price Target Increase: Citi raised the price target for Hims & Hers from $13.25 to $24, indicating approximately 8% upside based on the March 9 close, which reflects optimistic expectations regarding the company's new business model and revenue potential.
- Pricing Expectations: Although Hims & Hers has yet to release pricing for Wegovy and Ozempic, analyst Grosslight anticipates that the price will be $100 higher per month than the cash price through Novo's NovoCare site, as customers will have access to medical providers and nutrition and fitness advice, enhancing its competitive position in the market.
- Revenue Risk Warning: Grosslight cautioned that the requirement for Hims & Hers to cease mass compounding of semaglutide could lead to a substantial decline in revenue and adjusted EBITDA, indicating potential financial pressures under the new business model.
See More
Short Squeeze Risk Intensifies for Stock
- Short Squeeze Mechanism: A short squeeze occurs when a heavily shorted stock experiences a rapid price increase, leading to significant volatility that can result in investor losses and impact market confidence.
- Escalating Losses for Short Sellers: As the stock price rises, short sellers face increasing losses, prompting some to panic and buy back shares, which further drives up the price and creates a snowball effect that may destabilize the market.
- Historical Squeeze Review: Since January of last year, there have been four short squeezes, with the first doubling the stock price and the subsequent three increasing it by about 50%, all followed by rapid crashes, indicating high market volatility.
- Future Trend Prediction: If the current short squeeze drives Hims' stock price higher, similar market behaviors may follow, necessitating caution from investors regarding potential price collapse risks.
See More
U.S. Stocks Close Sharply Lower Amid Mixed Trading
- Dow Jones Decline: On Monday, the Dow Jones index fell over 300 points to close at 47,153.16, a drop of 0.73%, indicating growing concerns about the economic outlook that could dampen investor confidence.
- NASDAQ Resilience: In contrast to the broader market, the NASDAQ rose by 0.11% to 22,411.59, demonstrating relative strength in technology stocks, which may attract more capital into this sector amid market volatility.
- ZIM Earnings Miss: ZIM Integrated Shipping Services Ltd. reported a fourth-quarter loss of $0.82 per share, missing the analyst consensus of $0.57, while quarterly sales of $1.485 billion also fell short of the $1.503 billion estimate, highlighting challenges the company faces.
- Commodity Market Fluctuations: Oil prices increased by 3.8% to $94.34, while gold prices decreased by 0.7% to $5,124.50, reflecting market sensitivity to inflation and economic data that could influence future investment decisions.
See More
Hims & Hers Partners with Novo Nordisk for Weight-Loss Drugs
- Stock Surge: Hims & Hers Health closed at $22.15 on Monday, up 40.72%, primarily driven by the announcement of a collaboration with Novo Nordisk to sell GLP-1 weight-loss drugs, indicating strong market optimism for future growth.
- Volume Spike: The trading volume reached 168.1 million shares, about 557% above its three-month average of 25.6 million shares, reflecting heightened investor interest and increased market activity following the new partnership.
- Analyst Upgrades: Analysts at Needham and Citi raised their price targets for Hims & Hers to $30 and $24, respectively, signaling increased confidence in the company's future profitability, even as its stock remains down 62% from its 52-week high.
- Competitive Market Pressure: Despite the strong stock performance, the Motley Fool analyst team did not include Hims & Hers in their current list of top investment stocks, advising investors to carefully consider potential risks while pursuing high returns.
See More
Hims & Hers Partners with Novo Nordisk for Weight-Loss Drugs
- Stock Surge: Hims & Hers Health's stock soared 40.72% to close at $22.15 following the announcement of a partnership with Novo Nordisk, indicating strong market confidence in its growth potential.
- Volume Spike: Trading volume reached 168.1 million shares, approximately 557% above the three-month average of 25.6 million shares, reflecting heightened investor interest in the company's new strategy.
- Positive Market Reaction: Novo Nordisk dropped its patent infringement lawsuit against Hims & Hers, and the agreement to sell Novo's GLP-1 drug Ozempic on Hims & Hers' platform led to a significant stock price increase.
- Analyst Optimism: Analysts from Needham and Citi raised their price targets for Hims & Hers to $30 and $24, respectively, and although HIMS remains down 62% from its 52-week high, its risk-reward ratio is now more appealing.
See More
U.S. Stocks Close Higher Amid Oil Price Volatility
- Oil Price Impact: Oil prices spiked above $100 per barrel on Monday, causing early declines in stocks, but the market rebounded quickly after President Trump indicated the war might be nearing its end, with the S&P 500 closing up 0.71%, reflecting investor optimism about future developments.
- Economic Concerns: Despite the stock market recovery, last Friday's economic data raised concerns, with U.S. February payrolls falling by 92,000 and January retail sales declining by 0.2% month-over-month, potentially undermining confidence in economic recovery.
- Strong Earnings Performance: Over 95% of S&P 500 companies have reported earnings, with 74% exceeding expectations, and Q4 earnings growth is projected at 8.4%, providing support for the stock market and demonstrating corporate resilience amid economic uncertainties.
- Airline Stocks Rally: Following Trump's comments suggesting the Iran war might end soon, airline stocks such as United Airlines, Delta Air Lines, and American Airlines rose over 2%, indicating market expectations for a recovery in the airline industry.
See More
Citi Upgrades Hims & Hers to Neutral Amid Novo Nordisk Deal
- Rating Upgrade: Citi upgraded Hims & Hers Health from sell to neutral, primarily due to the agreement with Novo Nordisk for GLP-1 drug sales, which mitigates several risks facing the company and reflects a renewed market confidence in its future performance.
- Price Target Increase: Citi raised the price target for Hims & Hers from $13.25 to $24, indicating approximately 8% upside based on the March 9 close, which reflects optimistic expectations regarding the company's new business model and revenue potential.
- Pricing Expectations: Although Hims & Hers has yet to release pricing for Wegovy and Ozempic, analyst Grosslight anticipates that the price will be $100 higher per month than the cash price through Novo's NovoCare site, as customers will have access to medical providers and nutrition and fitness advice, enhancing its competitive position in the market.
- Revenue Risk Warning: Grosslight cautioned that the requirement for Hims & Hers to cease mass compounding of semaglutide could lead to a substantial decline in revenue and adjusted EBITDA, indicating potential financial pressures under the new business model.
See More
Short Squeeze Risk Intensifies for Stock
- Short Squeeze Mechanism: A short squeeze occurs when a heavily shorted stock experiences a rapid price increase, leading to significant volatility that can result in investor losses and impact market confidence.
- Escalating Losses for Short Sellers: As the stock price rises, short sellers face increasing losses, prompting some to panic and buy back shares, which further drives up the price and creates a snowball effect that may destabilize the market.
- Historical Squeeze Review: Since January of last year, there have been four short squeezes, with the first doubling the stock price and the subsequent three increasing it by about 50%, all followed by rapid crashes, indicating high market volatility.
- Future Trend Prediction: If the current short squeeze drives Hims' stock price higher, similar market behaviors may follow, necessitating caution from investors regarding potential price collapse risks.
See More
U.S. Stocks Close Sharply Lower Amid Mixed Trading
- Dow Jones Decline: On Monday, the Dow Jones index fell over 300 points to close at 47,153.16, a drop of 0.73%, indicating growing concerns about the economic outlook that could dampen investor confidence.
- NASDAQ Resilience: In contrast to the broader market, the NASDAQ rose by 0.11% to 22,411.59, demonstrating relative strength in technology stocks, which may attract more capital into this sector amid market volatility.
- ZIM Earnings Miss: ZIM Integrated Shipping Services Ltd. reported a fourth-quarter loss of $0.82 per share, missing the analyst consensus of $0.57, while quarterly sales of $1.485 billion also fell short of the $1.503 billion estimate, highlighting challenges the company faces.
- Commodity Market Fluctuations: Oil prices increased by 3.8% to $94.34, while gold prices decreased by 0.7% to $5,124.50, reflecting market sensitivity to inflation and economic data that could influence future investment decisions.
See More
