:max_bytes(150000):strip_icc()/GettyImages-2260914806-2616be1382184e17a167d542d97230d7.jpg "Hims & Hers Stock Pops on a Deal With Rival Novo Nordisk—What You Need to Know")
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Key Takeaways
- Hims & Hers Health shares popped Monday after the telehealth company announced a new partnership with Novo Nordisk.
- The deal will allow Hims & Hers to sell the Danish drugmaker’s weight-loss products through its platform.
Hims & Hers Health stock is soaring to start the week.
Shares of the telehealth provider were up nearly 37% Monday morning after Hims & Hers (HIMS) said it struck a deal with Novo Nordisk (NVO) to sell the Danish rival’s weight-loss drugs on its platform. Novo Nordisk’s U.S.-listed shares were up 1% recently.
Hims & Hers said Monday that Ozempic and Wegovy will become available through its platform later this month. Novo Nordisk also said it’s dismissing its lawsuit against Hims over its sale of compounded medications.
Why This Matters to Investors
The companies struck a deal to sell Novo’s weight-loss products through Hims & Hers’ platforms last year, but Novo pulled out over concerns with the online pharmacy’s compounding practices. Monday’s announcement could point to renewed confidence in Hims.
Last month, Hims & Hers surprised the weight-loss drug industry by launching its own compounded version of a semaglutide pill, the active ingredient in Novo’s Wegovy. Novo’s weight-loss pill was approved in December, and was not facing the sort of shortage that would allow compounding pharmacies like Hims to make and sell their own versions.
Novo attacked the launch, and days later Hims pulled the drug as Novo filed a lawsuit seeking to permanently stop Hims from selling its compounded weight-loss medications.
Despite Monday’s gains, Hims & Hers shares have still lost roughly two-thirds of their value from their highs last February. Novo Nordisk shares are down about 50% over the past 12 months.
