A month ago, Novo Nordisk was suing Hims & Hers. Monday, they announced a partnership.

How We Got Here

Hims built a significant chunk of its business selling compounded semaglutide — essentially a cheaper, copycat version of Ozempic and Wegovy — while Novo's drugs were on the FDA's shortage list. When the FDA declared the shortage over in February 2025, the legal ground shifted. The two companies tried a partnership last year; Novo walked away when Hims kept selling compounded versions anyway. Then in February, Novo sued Hims after the telehealth company launched a $49 knockoff of the Wegovy pill — and pulled it two days later under regulatory pressure. The FDA threatened "decisive steps" and flagged Hims to the DOJ.

What the Deal Actually Says

Under the new agreement, Hims will offer branded Ozempic and Wegovy injections and pills on its platform later this month — at the same price as other telehealth providers. In exchange, Hims stops advertising compounded GLP-1 drugs and limits them to cases where a licensed provider determines they're medically necessary. Novo dropped the lawsuit, though it reserved the right to refile. FDA Commissioner Marty Makary endorsed the deal on X Monday, calling it a win for affordability.

The trade-off: Hims loses its low-cost compounding edge but gains a legitimate, scalable product line — and removes the biggest legal overhang on its stock.

What Investors Are Watching Now

HIMS jumped 41% Monday; NVO gained 3%. Needham raised its price target to $30, Citi to $24. Even after the pop, HIMS trades at roughly 20 times forward earnings with revenue still growing 28% quarter over quarter. The stock was down 62% from its 52-week high going into Monday.

The bigger question: Eli Lilly's weight-loss pill, orforglipron, could hit the market as early as Q2. More competition means Hims' new partnership with Novo may face pressure before it even finds its footing.