Barclays Lifts Hims & Hers Target After Novo Drops Suit and GLP‑1 Deal
A new Novo partnership brings FDA‑approved Wegovy and Ozempic to Hims’ platform, curbing compounded semaglutide.
Overview
- Novo Nordisk said it ended its legal action against Hims & Hers related to an “illegal compound” dispute.
- Hims announced a collaboration with Novo to offer FDA‑approved GLP‑1 medications through its telehealth platform, limiting compounded semaglutide to narrower clinical use.
- Barclays raised its Hims & Hers price objective to $29 and kept an Overweight rating, pointing to the removal of a legal overhang and underestimated new product potential.
- Shares rallied following the Novo agreement, with one report noting the stock was up nearly 90% since the start of March.
- Recent commentary highlighted execution and profitability risks from shifting to branded drugs at self‑pay prices, alongside negative free cash flow, $1 billion in convertible debt, and higher capital spending.