Hims & Hers: From Courtroom to Boardroom as Short Sellers Circle a Stock in Transition

Hims & Hers settles Novo Nordisk lawsuit, signs partnership to dispense branded GLP-1s like Ozempic, pivoting from compounded products amid FDA regulatory shifts.

The script could hardly have been written more improbably. Hims & Hers Health, sued by Novo Nordisk early last year over compounded semaglutide products, has not only settled the dispute but signed a commercial partnership with the Danish drugmaker. The lawsuit was dropped in March, and what emerged is a strategic pivot that rewrites the company’s weight-management playbook.

Under the new arrangement, Hims & Hers will dispense Novo Nordisk’s branded GLP-1 therapies — including injectables Ozempic and Wegovy, as well as the oral Wegovy pill. In return, it will stop marketing compounded GLP-1 products, except in clinically justified individual cases. The shift away from compounding comes as the FDA has scheduled a July 2026 hearing to update guidelines for peptide therapies — a meeting that could reshape the entire sector.

The U.S. Department of Health and Human Services announced in April that several peptides are being reviewed for possible removal from restriction lists. Clearer prescribing rules for next-generation drugs could permanently influence the product portfolio and patient programs of the digital health provider.

A Robust Business, a Beaten-Down Stock

Operationally, the company is firing on most cylinders. Full-year 2025 revenue hit $2.35 billion, a 59 percent jump from the prior year, and subscribers surpassed 2.5 million for the first time. EBITDA came in at 98 percent of internal targets.

Yet the share price tells a different story. The stock closed at $26.33 on April 29, well below its 200-day moving average of $37.69. Market capitalization stands at roughly $6 billion. More telling: as of April 22, short interest represented about 34 percent of the float — a clear signal that a significant chunk of the market expects further declines.

The technical picture is split. The stock sits above its 20-day line at $24.33 and its 50-day line at $21.41, but remains far below the 200-day average — a legacy of the late-2025 crash.

A Busy Calendar Ahead

The next concrete data point arrives May 11, when Hims & Hers reports first-quarter 2026 results after the close. Management has guided for full-year revenue between $2.7 billion and $2.9 billion, implying growth of roughly 15 to 24 percent. Whether the numbers support that forecast will heavily influence sentiment heading into the July FDA meeting.

On June 11, the company holds its virtual annual meeting. Among the agenda items is an advisory vote on executive compensation, including disclosure of the CEO pay ratio. The board recommends approval of all proposals.

Building a Vertically Integrated Model

Beyond the GLP-1 pivot, Hims & Hers is expanding internationally through acquisitions — Livewell in Canada and Zava in Europe. It is also broadening its offering into cancer screening tests, a proprietary diagnostics platform, and expanded hormone therapies.

A manufacturing facility acquired in early 2025 gives the company the ability to scale peptide therapies if the regulatory environment becomes more favorable. J.P. Morgan recently initiated coverage with a buy rating, highlighting the vertically integrated model — spanning doctors, pharmacies, and manufacturing — as a structural competitive advantage. The analysts’ price target reaches as high as $35.

Earlier this year, Hims & Hers also struck a partnership with Eli Lilly, integrating branded GLP-1 medications onto its platform alongside the Novo Nordisk deal. Analysts described the moves in late April as a turning point that legitimizes the company’s role in the GLP-1 market while reducing legal risks from earlier compounding practices.

The stock closed Wednesday at $26.23, down about six percent on the day — a reminder that even strategic progress doesn’t always translate into immediate market rewards. With short sellers heavily positioned against it and a regulatory catalyst on the horizon, Hims & Hers enters a defining stretch where operational momentum and legal clarity will be tested against persistent bearish sentiment.