Hims & Hers Stock Surges Amid Weight-Loss Drug Battle with Novo Nordisk

A landmark deal reshapes the $100-billion GLP-1 market, but questions remain about affordability, access, and the future of compounded weight-loss medications.

In one of the most dramatic corporate reversals the pharmaceutical industry has seen in years, Novo Nordisk and Hims & Hers Health announced on March 9, 2026, that they are ending their bitter legal feud and entering a commercial partnership that will bring FDA-approved Wegovy and Ozempic to the telehealth giant's platform [1][2]. Shares of Hims & Hers (NYSE: HIMS) surged more than 40% on the news — a stunning single-day recovery for a stock that had lost nearly 80% of its value from a February 2025 peak of over $70 [3][4].

The deal marks the conclusion of a saga that has touched on some of the most contentious issues in American healthcare: the skyrocketing cost of breakthrough drugs, the role of compounding pharmacies, the limits of FDA enforcement, and the question of who ultimately gets access to medications that can change — and save — lives.

The Rise and Fall (and Rise Again) of Hims & Hers

Hims & Hers Health, founded in 2017 as a direct-to-consumer telehealth platform for hair loss and sexual health treatments, pivoted aggressively into the weight-loss drug market beginning in 2023. The timing was impeccable. Demand for GLP-1 receptor agonists — a class of drugs originally developed for diabetes that proved remarkably effective for weight loss — was exploding, but supply could not keep up [5].

With branded Wegovy and Ozempic in chronic shortage from 2022 through late 2024, a legal exception under federal law allowed compounding pharmacies to produce versions of drugs on the FDA shortage list. Hims & Hers seized the opportunity, offering compounded semaglutide — the active ingredient in both Wegovy and Ozempic — at a fraction of the branded price through its slick, consumer-friendly telehealth platform [6].

The results were extraordinary. Hims & Hers' annual revenue soared from $872 million in 2023 to $1.5 billion in 2024 and then to $2.35 billion in 2025, a 59% year-over-year increase [7]. Subscribers topped 2.5 million. The stock reached an all-time high above $70 in February 2025, making the company one of the most talked-about names in healthcare [8].

But the compounding gold rush was about to hit a wall.

Source: Hims & Hers Health Investor Relations / MacroTrends

Data as of Feb 23, 2026CSV

The FDA Crackdown

In February 2025, the FDA announced that the semaglutide shortage had been resolved — a determination that effectively pulled the legal rug out from under compounding pharmacies [9]. Under federal law, once a drug is no longer in shortage, compounders can no longer produce "essentially a copy" of the branded product.

Hims & Hers stock cratered 26% on the day of the announcement [9]. But the company did not retreat quietly. Instead, it argued that its products were "personalized" formulations — not mere copies — and continued selling compounded GLP-1 medications.

The FDA disagreed. In September 2025, the agency issued a warning letter to Hims & Hers, citing claims on the company's website that its compounded products contained "the same active ingredient as Ozempic and Wegovy" and featured "clinically proven ingredients" — language the FDA said falsely implied equivalence with FDA-approved drugs [10].

Then, in February 2026, Hims & Hers made its boldest move yet: launching a compounded oral semaglutide product marketed as an alternative to Novo Nordisk's newly approved Wegovy pill. Within two days, facing intense regulatory and legal pressure, the company pulled the product [11]. But the damage was done.

On February 9, 2026, Novo Nordisk filed a sweeping patent infringement lawsuit against Hims & Hers, calling the compounded products "unapproved, inauthentic, and untested knockoffs" [12]. The HHS General Counsel referred the matter to the Department of Justice for investigation of potential federal law violations [11]. HIMS shares plunged to roughly $14, a far cry from their peak.

The Surprise Deal

Against this backdrop, the March 9 announcement stunned Wall Street. Under the terms of the agreement, Hims & Hers will begin selling FDA-approved injectable and oral versions of Novo Nordisk's Wegovy and Ozempic on its platform later this month. The product lineup includes Ozempic injections (0.5 mg, 1 mg, and 2 mg), Wegovy injections (1.7 mg and 2.4 mg), and the newly launched Wegovy pill (in 1.5 mg, 4 mg, 9 mg, and 25 mg tablet doses) [1][2].

In exchange, Hims & Hers agreed to what Inc. magazine described as "a surprising concession": the company will cease advertising and marketing compounded GLP-1 products entirely [13]. Existing patients on compounded semaglutide will be offered the chance to transition to FDA-approved medications. Hims will still be permitted to provide compounded versions for a "limited set" of patients whose clinical needs cannot be met by branded products, but this will no longer be a featured offering [2].

Crucially, Novo Nordisk agreed to dismiss its patent infringement lawsuit — though the Danish pharmaceutical giant pointedly noted it "reserves the right to refile in the future" [1][14].

The pricing terms are also significant. Hims will offer Novo's drugs at the same self-pay prices available on other telehealth platforms, with the Wegovy pill starting at $149 per month and injectables at $199 per month for initial fills [15]. Subsequent fills will cost $349 per month for most doses, with the highest Ozempic dose reaching $499 per month [15].

A Market in Transformation

The Hims-Novo deal does not exist in a vacuum. It reflects a broader reconfiguration of the GLP-1 weight-loss drug market, which is projected to grow from $19.6 billion in 2025 to $104.9 billion by 2035 [16].

Source: GDELT Project

Data as of Mar 9, 2026CSV

Several forces are converging simultaneously:

The end of the compounding era. The FDA has sent warning letters to at least 30 telehealth firms over illegal GLP-1 sales and has announced plans to restrict access to GLP-1 active pharmaceutical ingredients used in compounding [17]. Novo Nordisk alone has filed approximately 130 lawsuits against compounders for deceptive marketing and consumer fraud [18]. The regulatory window that allowed the compounding market to flourish is rapidly closing.

Price competition heats up. Eli Lilly's Zepbound (tirzepatide), which held 71% of new U.S. obesity prescriptions by late 2025, is available through LillyDirect starting at $349 per month [19]. Walmart now offers Zepbound at LillyDirect prices. The emergence of oral formulations — including the Wegovy pill approved in December 2025 — is expected to further drive down costs and increase accessibility [15].

Medicare enters the market. The federal government has announced that Medicare and Medicaid will cover GLP-1 medications for weight loss beginning mid-2026, with patient copays expected to be approximately $50 per month. This could unlock access for millions of older Americans [15].

The patient population continues to expand. By 2026, nearly one in five U.S. adults has tried a GLP-1 medication, with roughly one in eight remaining an active user. An estimated 25 million Americans are expected to be on GLP-1 treatment by 2030, up from around 10 million in 2025 [16].

The Financial Picture

For Hims & Hers, the Novo partnership addresses an existential threat — the company's GLP-1 revenue was built almost entirely on compounded products that were increasingly under legal and regulatory siege. The deal transforms Hims from a legally embattled compounder into a legitimate distribution channel for branded drugs.

But the economics are fundamentally different. Compounded semaglutide offered Hims high margins on a relatively low-cost product. Selling branded Wegovy and Ozempic at Novo's set prices will mean thinner margins, with Hims earning revenue primarily through its telehealth consultation fees and platform services rather than drug markups [20].

Analyst sentiment reflects this uncertainty. Of the 12 analysts covering HIMS as of March 9, the consensus rating is "Hold," with three buy ratings, two sells, and seven holds. Price targets range widely from $29 to $85, with an average of $42.88 [21]. Bank of America maintains an Underperform rating with a $29 target, citing expected pressure on 2026 revenue and EBITDA margins, while Citi carries a Sell rating at $30, projecting that broader Wegovy availability will cannibalize Hims' existing business [21].

The company's own guidance for 2026 projects revenue of $2.7 billion to $2.9 billion and adjusted EBITDA of $300 million to $375 million [7] — healthy growth, but a more modest trajectory than the explosive expansion of 2023–2025.

For Novo Nordisk, the deal is a strategic calculation. The company's combined Ozempic and Wegovy sales totaled $26 billion in 2024 [22], and while growth has slowed — the company cut its 2025 forecast amid decelerating GLP-1 sales [23] — expanding distribution through popular consumer platforms like Hims helps reach patients who might otherwise turn to compounders or foreign pharmacies. It also neutralizes a thorn in Novo's side without the cost and uncertainty of prolonged litigation.

The Patient Perspective

Lost in the corporate maneuvering is a simple question: what does this mean for the millions of Americans who rely on, or want access to, GLP-1 medications?

The picture is mixed. On one hand, the FDA crackdown on compounders and the Hims-Novo deal signal a shift toward a more regulated, arguably safer marketplace. The FDA has documented adverse events linked to compounded GLP-1 products, including hospitalizations from dosing errors, drug stability issues from improper storage, and products at doses exceeding FDA-approved labeling [17].

On the other hand, affordability remains a critical barrier. Even at reduced self-pay prices, branded GLP-1s remain expensive. The Wegovy pill at $149 per month is substantially cheaper than the $1,000+ per month list price that once defined the category, but it still represents a significant ongoing expense for many families — particularly those without insurance coverage. Only 19% of large employer plans covered GLP-1s for weight loss in 2025 [15].

"The shortage is much better; insurance coverage is much worse," one endocrinologist told reporters, capturing the paradox facing patients [17]. For the patient who was paying $100–$200 per month for compounded semaglutide, the transition to $349 per month for branded injectables represents a meaningful cost increase.

The promise of Medicare coverage beginning mid-2026, with copays around $50 per month, could be transformative for seniors — but younger, uninsured, and underinsured patients face a more uncertain path [15].

What Comes Next

The Hims & Hers–Novo Nordisk deal is likely just one chapter in a much longer story. The GLP-1 market is entering a phase of rapid evolution, with oral formulations, new competitors, and expanded insurance coverage all poised to reshape the landscape.

Eli Lilly's oral tirzepatide is expected to reach the market in early Q2 of 2026 [16], which could further intensify price competition. Additional GLP-1 and combination drugs are in late-stage clinical trials from companies including Amgen, Viking Therapeutics, and Roche [16].

For Hims & Hers, the strategic pivot from compounding rebel to authorized distributor carries both opportunity and risk. The company's 2.5 million subscribers represent a massive built-in customer base, and its consumer-friendly digital platform gives it distribution advantages that traditional pharmacies may struggle to match. But the company will need to prove it can generate sustainable margins on branded drugs while navigating an increasingly competitive telehealth landscape [20].

For Novo Nordisk, the partnership with Hims reflects a broader industry recognition that the old pharma distribution model — dominated by pharmacy benefit managers, insurance formularies, and opaque pricing — is giving way to a more direct, consumer-facing approach. The question is whether Novo can maintain its pricing power as competition intensifies and government payers demand deeper discounts [22][23].

And for the nearly one in five American adults who have tried a GLP-1 medication, the stakes extend far beyond stock prices and corporate strategy. These drugs represent, for many, the first effective medical treatment for obesity — a condition that affects more than 40% of U.S. adults and drives billions in healthcare costs. Whether the evolving market ultimately expands access or entrenches existing disparities will depend not just on corporate deals, but on regulatory policy, insurance reform, and the political will to treat obesity as the public health crisis it is.

The HIMS stock closed at approximately $22.15 on March 9, 2026, up 40.72% on the day. Novo Nordisk shares (NVO) traded slightly lower as investors weighed the implications of broader distribution on the company's margin structure.