Hims & Hers: Repartnering With Novo Removes Legal Overhang and Reshapes Weight Loss Segment
Hims & Hers has re-partnered with Novo Nordisk to sell Novo’s FDA-approved diabetes and obesity treatments, leading to the dismissal of Novo’s patent infringement lawsuit and a 40% jump in Hims shares. While the legal overhang is removed, Morningstar maintains its $23 fair value estimate for Hims due to lingering uncertainties and potential near-term margin weakness despite a forecasted slight increase in revenue for the weight-loss segment. Hims will shift from advertising compounded GLP-1 medications to promoting FDA-approved versions, though a limited number of customers may still access compounded drugs.
https://www.morningstar.com/stocks/hims-hers-repartnering-with-novo-removes-legal-overhang-reshapes-weight-loss-segment