Shares of Hims & Hers Health (NYSE: HIMS) have staged a sharp rebound since drugmaker Novo Nordisk (NYSE: NVO) dropped its lawsuit against the company, removing what many investors considered the biggest risk.
For months, legal uncertainty had hung around Hims’ neck due to its compounded semaglutide products, copies of Novo Nordisk’s drugs allowed during supply shortages, which drew regulatory scrutiny once the shortage designation ended.
Under the new agreement, the company behind blockbuster GLP-1 drugs will allow Hims to offer branded treatments such as Ozempic and Wegovy directly through its platform.
Accordingly, bulls now argue the stock, trading above $22 at the time of writing, up 40% on the daily chart, could still have significant upside if its growth story continues to play out.
Novo Nordisk lawsuit dropped; HIMS stock rebounds
Earlier this year, investors feared a legal crackdown could severely damage Hims. In late February, its stock was down more than 70% from its peak, and price target cuts were coming in quickly.
The new partnership effectively eliminates the legal threat while giving the telehealth provider access to branded medications. Rather than competing with its peers, the company now acts as a distribution channel for some of their most demanded products.
With more than 2.5 million subscribers, Hims already operates a massive distribution network. Understandably, though, the ongoing rally reflects the belief that a transition in question can significantly expand the company’s addressable market even more, especially given that many patients prefer branded medications over alternatives.
Additional HIMS tailwinds
Even before the legal resolution, the company’s underlying financial performance was strong. According to its latest results, Hims reported $2.35 billion in 2025 revenue, up 59% year-over-year. Likewise, net income sat at $128 million.
The bullish thesis is also supported by Hims’ international expansion strategy. Namely, the company recently agreed to acquire Eucalyptus, a digital health platform operating in Australia, the United Kingdom, Germany, Japan, and Canada. Combined with the Novo Nordisk partnership, the deal could help Hims distribute weight-loss therapies and other treatments across multiple international markets.
Moreover, rival drugmaker Eli Lilly (NYSE: LLY) is also gearing up for the launch of its own oral weight-loss therapy in the near future. If Hims eventually becomes a distribution partner for multiple GLP-1 manufacturers, it could emerge as a key digital gateway for a rapidly expanding class of metabolic drugs.
Is HIMS stock a buy?
All in all, the new partnership with Novo Nordisk has removed a major obstacle in Hims & Hers’ path forward and could significantly expand its market opportunity.
Whether the stock truly realizes its potential will, however, depend on its ability to scale its subscriber platform, secure additional drug partnerships, and maintain its rapid growth trajectory.
For now, investor optimism seems to lean positive, particularly as the company combines strong revenue growth with expanding access to additional blockbuster treatments. Accordingly, while it is still early to tell how much near-term optimism is going to be reflected in the price, the bullish case has a lot to support it, meaning HIMS shares are at least worth keeping an eye on in the weeks to come.
Featured image via Shutterstock
