Hims & Hers (NYSE:HIMS) was supposed to be one of the losers due to the semaglutide shortage ending. However, it has bottomed out and surged after the company announced a partnership with Novo Nordisk (NYSE:NVO). NVO stock also cratered in recent months, so this is a win-win.
Hims & Hers announced what might seem like a counterintuitive move: partnering with a company that makes a product they previously competed against. Hims & Hers has built its business partly by selling alternatives to weight-loss drugs like Wegovy, but now they're collaborating directly with Novo Nordisk to offer the actual drug to their members.
Starting this week, Hims & Hers members can be prescribed Wegovy starting at $599 per month through NovoCare Pharmacy. This price point is competitive in the weight-loss drug market, especially considering Novo Nordisk had previously announced a price of $499 a month for all dose strengths of Wegovy, while Eli Lilly's competing drug Zepbound ranges from $499 to $599 monthly depending on dosage.
In essence, Hims & Hers is embracing a "if you can't beat 'em, join 'em" approach that gives their customers more options. The San Francisco-based company stated that their plan is to make obesity care "more accessible, more affordable, and more connected" for Americans.
While a 35% single-day gain might make potential investors hesitant to jump in, analyst sentiment and price targets suggest there could still be significant upside potential for HIMS stock. The consensus price target here is at $38.25. As of writing, HIMS stock sits at exactly $38 pre-market, so there’s some upside, though it’s inconsequential. The highest price target is at $68.
It's also worth noting that Hims & Hers is scheduled to announce its first quarter 2025 financial results on May 5, 2025.
