Why Is Hims & Hers Health (HIMS) Stock Soaring Today

What Happened?

Shares of telehealth company Hims & Hers Health (NYSE:HIMS) jumped 12.1% in the afternoon session after the company's CEO stated that it will continue to offer cheaper, compounded versions of GLP-1 weight-loss drugs. This statement comes on the heels of Novo Nordisk's recent termination of its partnership with Hims & Hers, where it was to supply its branded weight-loss drug, Wegovy. Novo Nordisk ended the collaboration citing concerns over Hims & Hers' promotion and sale of compounded drugs. 

Despite the public breakup, the CEO's reassurance about the continued availability of more affordable alternatives seems to have resonated with investors. The market for weight-loss treatments is substantial, and Hims & Hers' strategy to provide lower-cost options could still be a significant growth driver.

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What The Market Is Telling Us

Hims & Hers Health’s shares are extremely volatile and have had 94 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 29.2% on the news that Novo Nordisk, the maker of the weight loss drug Wegovy, announced it would terminate its agreement with the company (Hims & Hers). 

The surprise move came just months after the two expanded their deal, letting Hims & Hers sell Wegovy directly. Novo Nordisk said it pulled out because Hims & Hers may have broken the rules "by engaging in deceptive promotion and selling of illegitimate, knockoff versions of Wegovy that put patient safety at risk." Losing this deal is a hard hit for Hims & Hers, since weight loss drugs have been a big part of their recent sales growth.

Hims & Hers Health is up 84.6% since the beginning of the year, but at $46.52 per share, it is still trading 32.3% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $4,570.

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