Hims & Hers stock jumps on Novo Nordisk GLP-1 partnership

Hims & Hers (HIMS) banal popped much than 20% successful trading aboriginal Tuesday aft Novo Nordisk (NVO) announced a concern with it and different telehealth platforms to connection patients entree to the blockbuster value nonaccomplishment cause Wegovy.

Novo's banal was besides up, astir 3% successful aboriginal trading.

Patients volition beryllium capable to entree the fashionable GLP-1 done Novo's online pharmacy, NovoCare, straight from Hims and telehealth providers Ro and LifeMD.

In caller months, rival Eli Lilly (LLY) has likewise opened up its direct-to-consumer pharmacy to platforms, arsenic good arsenic partnered with Ro to connection vials of Lilly's blockbuster value nonaccomplishment cause Zepbound. Novo's concern focuses connected the injectable pens — the much fashionable signifier of the drug.

Hims said patients tin entree the cause on with enactment services done memberships for a bundled terms of $599 per month. The woody comes conscionable up of the company's archetypal 4th net report, but volition not beryllium reflected successful the report.

The determination could spell bully quality for some Hims and Novo — for antithetic reasons. Novo has been pressured successful contention with Lilly successful the obesity space, portion Hims has faced questions astir its concern exemplary arsenic entree to compounded products declined.

"Could beryllium precise adjuvant for some Companies and we judge NVO benefits arsenic it has been losing stock astir each week to LLY successful the obesity market," wrote Mizuho's healthcare assemblage adept Jared Holz successful a enactment to clients Tuesday.

Hims banal has seen crisp declines, down 45% since reporting net earlier this year, arsenic a effect of trading connected entree to compounded GLP-1s. It and respective different telehealth platforms, including Ro, person been caught successful the tug-of-war betwixt compounding pharmacies and the GLP-1 drugmakers.

Compounders were allowed to supply copycats of the branded drugs erstwhile Lilly's and Novo's drugs were successful shortage. The FDA has since declared the shortage over, and compounders are suing to proceed offering the products.

"The banal is opening to look absorbing pursuing a crisp correction. Key to reversing antagonistic sentiment volition beryllium demonstrating continued momentum successful the halfway and gaining visibility into value nonaccomplishment revenue," Morgan Stanley analysts wrote successful a enactment to clients Tuesday, based connected app download and web traffic.

Anjalee Khemlani is the elder wellness newsman astatine Yahoo Finance, covering each things pharma, insurance, attraction services, integer health, PBMs, and wellness argumentation and politics. That includes GLP-1s, of course. Follow Anjalee arsenic AnjKhem connected societal media platforms X, LinkedIn, and Bluesky @AnjKhem.

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