When Novo Nordisk filed a lawsuit against telehealth platform Hims & Hers (HIMS) earlier this year, Wall Street assumed the worst was yet to come for the fast-growing digital health company. But in a stunning turn of events, the Danish pharmaceutical giant has not only dropped the lawsuit—it has struck a partnership deal with its former adversary.
The about-face sent shares of Hims & Hers Health Inc. soaring 40% on Monday, marking one of the stock’s biggest single-day rallies on record.
The relationship between Hims & Hers and Novo Nordisk has been anything but smooth. The two companies briefly partnered last year, only for Novo to walk away, accusing Hims of breaching their agreement by continuing to sell compounded versions of its blockbuster weight loss drugs under the guise of “personalization.”
At the time, Hims was legally allowed to sell compounded semaglutide—the active ingredient in Novo’s Wegovy and Ozempic—while the drug was on the FDA’s shortage list. But after the FDA declared the shortage resolved in February 2025, tensions escalated. Hims has long maintained that selling personalized versions of these medications is both legal and beneficial for patients. When the initial partnership collapsed, the company accused Novo of trying to “strong-arm” it into selling branded products—a move Hims said it would not accept.
Talks resumed last November after Novo launched an oral version of Wegovy, but no deal materialized. Then in February, Novo sued Hims after the telehealth company announced plans to offer a lower-cost version of the Wegovy pill, alleging patent infringement. Soon after, facing pressure from regulators over compounded weight loss drugs, Hims pulled its copycat version from the market.
That makes Monday’s announcement all the more surprising.
Under the new agreement, Hims & Hers will offer branded Ozempic injections and Wegovy pills on its platform. The company will still provide compounded semaglutide to patients when medically necessary, but will no longer advertise or market those options. Novo Nordisk, in turn, has agreed to drop all pending litigation.
For investors, the resolution removes one of the biggest overhangs hanging over Hims stock.
“The legal uncertainty was the sword of Damocles for Hims,” said one analyst. “Now that cloud has lifted—and the fact that Novo came back to the table speaks volumes about the reach and value of Hims’ platform.”
While the deal provides Hims with a stable, authorized supply of the most sought-after GLP-1 drugs on the market, it comes with a trade-off: Selling branded products typically carries lower gross margins than selling in-house compounded versions.
Still, analysts see the trade as worthwhile. With demand for weight loss treatments showing no signs of slowing, gaining official access to Novo’s portfolio positions Hims for sustained growth. The company reported 28% revenue growth last quarter and has significant international expansion opportunities ahead.
Despite Monday’s sharp rally, Hims stock doesn’t look expensive by traditional metrics. The shares trade at under 20 times forward earnings based on 2026 consensus estimates, and below 15 times based on 2027 projections.
But given the volatile history between the two companies, some caution is warranted. The durability of this new partnership remains to be tested, and investors may want to keep positions modest. Still, if the truce holds, Monday’s pop could be just the beginning. From bitter rivals to business partners, Hims & Hers has pulled off a dramatic pivot—and in doing so, secured its place in the red-hot weight loss drug market.
