Key Takeaways
- Hims & Hers (HIMS) shares climbed nearly 49% across five consecutive trading days, including an 11% single-day jump on Monday.
- The FDA revealed plans for a July session to potentially lift restrictions on 12 different peptides, creating new business opportunities for Hims.
- Health Secretary RFK Jr. publicly supported the peptide initiative, while Hims already controls a peptide production facility in California purchased in February 2025.
- A legal settlement between Hims and Novo Nordisk paves the way for Hims to offer branded Wegovy products on its telehealth platform.
- First-quarter results arrive May 11, with analysts projecting a 70% decline in EPS compared to last year amid aggressive capital investments.
The telehealth sector just witnessed one of its most dramatic rallies in recent memory. Hims & Hers Health experienced a stunning five-session surge that pushed shares up approximately 49%, with Monday’s trading session alone contributing an 11% gain. The stock has now recovered more than 125% from its February bottom.
Hims & Hers Health, Inc., HIMS
The dramatic price movement stems from two major catalysts: shifting regulatory policy on peptide compounds and a landmark agreement with pharmaceutical giant Novo Nordisk.
On April 15, Health Secretary Robert F. Kennedy Jr. disclosed that the FDA plans to reassess its position on 12 peptides currently on a restricted list established in 2023. This restriction previously prevented compounding pharmacies from manufacturing specific peptide-based treatments. Kennedy has been an outspoken advocate for peptide therapies, even revealing during a Joe Rogan podcast appearance that he personally uses them.
This regulatory development carries significant weight for Hims because the company strategically acquired a peptide production facility in California during February 2025. Should the FDA proceed with relaxing these restrictions, Hims would have immediate manufacturing capability to produce and distribute peptide therapies commercially. The company has already announced plans for a “longevity specialty” product portfolio scheduled for 2026, encompassing peptides, coenzymes, and GLP therapeutic options.
Resolving the Novo Nordisk Conflict
The second major catalyst involves the resolution of legal tensions between Hims and pharmaceutical powerhouse Novo Nordisk. The two corporations experienced a contentious relationship breakdown in 2025 after an original partnership agreement fell apart. Novo filed legal action against Hims, alleging the telehealth company engaged in misleading marketing of “knockoff” Wegovy alternatives, triggering lawsuits, FDA warning correspondence, and extended public confrontation.
This March brought a comprehensive settlement. Under the new arrangement, Hims commits to making Novo’s branded GLP-1 medications — including both injectable and oral Wegovy formulations — priority offerings on its distribution platform. Novo withdrew its litigation in exchange.
This agreement provides Hims with a legitimate pathway in the lucrative GLP-1 marketplace, though profit margins will be lower compared to its compounded alternatives. Hims had previously developed over 1 million square feet of domestic facility capacity, including sterile injectable production capability for weight management products. Combining this infrastructure with authorized Wegovy distribution represents a more sustainable business model than the regulatory uncertainty surrounding its previous operations.
Novo Nordisk also benefits from this arrangement. NVO shares have declined 21% year-to-date, facing pressure from competitive forces and pricing challenges. Partnering with a telehealth distributor enables Novo to access patients through more direct channels.
Upcoming Earnings Report Will Reveal True Financial Picture
This remarkable stock performance precedes the company’s May 11 earnings announcement, and the financial results will present a mixed picture. Hims provided Q1 revenue guidance between $600 million and $625 million. However, Wall Street analysts anticipate EPS of merely $0.06, representing a steep 70% year-over-year decline.
Capital expenditures jumped 138% during Q4 2025, while free cash flow reversed into negative territory at -$2.57 million compared to positive $59.5 million in the prior-year period. The company is directing substantial resources toward expanding its manufacturing operations and financing the pending Eucalyptus acquisition, which generates annual recurring revenue exceeding $450 million.
Full-year 2025 revenue reached $2.35 billion, reflecting 59% growth driven primarily by compounded GLP-1 product sales. Management now projects approximately 19% growth for the current year, a deceleration as higher-margin compounded offerings transition toward the branded Wegovy distribution model.
The company reported more than 2.5 million active subscribers in its most recent disclosure, with average monthly revenue per subscriber at $83 and subscriber expansion running at 13% year-over-year.
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