Key Takeaways
- The telehealth company transitioned from compounded semaglutide to FDA-approved branded GLP-1 treatments in March 2026
- BofA Securities lowered its price target to $21 from $23 while maintaining a Neutral stance
- Analysts predict GLP-1 EBITDA contributions may decline by approximately 50% compared to 2025
- Amazon Pharmacy launched Eli Lilly’s oral weight loss medication Foundayo, intensifying market competition
- Shares of HIMS have plummeted nearly 39% since January, currently hovering around $20
In March 2026, Hims & Hers executed a strategic overhaul, abandoning compounded semaglutide products in favor of FDA-sanctioned branded GLP-1 therapies. Management positioned the decision as transforming the company into “the largest global consumer health platform for access to more affordable, approved medications.”
Hims & Hers Health, Inc., HIMS
This strategic shift emerged from a settlement with pharmaceutical giant Novo Nordisk. The resolution required Hims & Hers to distribute Novo Nordisk’s authorized GLP-1 products instead of lower-cost compounded alternatives.
Investors have punished the stock severely. HIMS has plunged approximately 39% year-to-date in 2026, hovering near $20 per share as of midweek trading.
BofA Securities analyst Allen Lutz reduced his price objective on HIMS this week from $23 down to $21. He maintained his Neutral assessment, pointing to valuation compression among comparable companies and mounting short-term profitability challenges.
Lutz forecasted that 2026 EBITDA figures might land approximately 20% beneath current Wall Street expectations. His analysis suggests GLP-1-related EBITDA could plummet up to 50% on a year-over-year basis.
Neverthstanding these concerns, Lutz indicated his team holds a “slightly more optimistic” perspective regarding the company’s global expansion initiatives. He highlighted that the $149 monthly branded GLP-1 subscription service might eventually deliver margins comparable to compounded options, contingent upon subscriber migration rates.
Subscriber Migration Remains Critical Metric
BofA Securities projects Hims & Hers might successfully transition between 40% and 50% of current subscribers to branded subscription plans, while maintaining 5% to 10% on compounded alternatives. This scenario would produce approximately $60 million to $90 million in quarterly GLP-1 sales.
International expansion represents another strategic priority. The company seeks to scale that division beyond $1 billion in annual revenue within a three-year timeframe, targeting mid-teens organic compound annual growth rates. BofA’s research on the Eucalyptus platform indicates roughly 90% of revenue will derive from branded GLP-1 distribution with approximately 40% gross profit margins.
Canaccord analyst Maria Ripps offered a more constructive perspective. She maintained her Buy recommendation, contending that the Novo Nordisk collaboration represents a “long-term tailwind” for the business. Ripps believes the market underestimates the value of the company’s telehealth infrastructure, subscriber foundation, and diversifying therapeutic offerings.
Amazon Intensifies Competition With Lilly’s Foundayo Launch
Competitive dynamics grew more challenging Thursday when Amazon Pharmacy revealed it would distribute Eli Lilly’s recently approved oral GLP-1 medication, Foundayo, featuring same-day delivery capabilities. HIMS dipped 0.5% following the announcement. Novo Nordisk declined 1.5%.
Foundayo represents a once-daily oral therapy designed for adults managing obesity or overweight conditions with related health complications. The medication costs $25 monthly with insurance coverage, or $149 monthly for self-paying patients.
Amazon will provide same-day delivery across nearly 3,000 metropolitan areas, with plans to extend coverage to 4,500 locations before year-end. The e-commerce giant disclosed it has dispensed GLP-1 treatments since 2021, with customers saving over $200 million through automated discount programs, where GLP-1 medications represent the highest savings category.
Among Wall Street professionals, HIMS holds a Moderate Buy consensus rating derived from four Buy recommendations and 10 Hold ratings issued during the previous three months. The consensus price target of $26.36 suggests potential upside of approximately 36% from present trading levels.
