Key Takeaways
- Hims & Hers (HIMS) shares climbed up to 49% over five consecutive trading days, including an 11% jump on Monday.
- The FDA revealed plans for a July meeting to review restrictions on 12 peptides, creating potential new revenue opportunities for Hims.
- Health Secretary RFK Jr. publicly supported the peptide initiative, while Hims already operates a peptide production facility purchased in California during February 2025.
- A settlement between Hims and Novo Nordisk resolved prior litigation, with Hims now distributing branded Wegovy products via its platform.
- First quarter earnings arrive May 11, with analysts projecting a 70% year-over-year decline in EPS amid aggressive capital investments.
Hims & Hers Health has experienced an extraordinary week that caught most market observers off guard. The telehealth platform’s shares rose by as much as 11% during Monday’s session, completing a remarkable five-day stretch that delivered approximately 49% gains. From its February bottom, the stock has now rallied more than 125%.
Hims & Hers Health, Inc., HIMS
The dramatic price movement stems from two major catalysts: regulatory developments surrounding peptides and a strategic agreement with Novo Nordisk.
On April 15, Health Secretary Robert F. Kennedy Jr. revealed that the FDA plans to assess whether 12 peptides should be removed from a restricted inventory established in 2023. This inventory had prevented compounding pharmacies from manufacturing specific peptide treatments. Kennedy has been an outspoken advocate for peptides, even disclosing during a Joe Rogan interview that he uses them personally.
This development holds significant implications for Hims because the company discreetly acquired a peptide production facility located in California during February 2025. Should the FDA relax these regulatory constraints, Hims would gain a competitive advantage in manufacturing and distributing peptide treatments on a large scale. The company has already announced plans for a “longevity specialty” product portfolio launching in 2026 that will include peptides, coenzymes and GLP formulations.
Strategic Partnership with Novo Nordisk
The second catalyst involves a settlement agreement between Hims and Novo Nordisk. These two corporations endured a contentious separation in 2025 following the breakdown of an initial collaboration. Novo accused Hims of misleading marketing practices related to “knockoff” Wegovy alternatives, resulting in legal action, FDA warning correspondence, and an extended public conflict.
This past March, both parties reached a resolution. Hims committed to prioritizing the distribution of Novo’s legitimate GLP-1 medications — including Wegovy injectable and oral formulations — across its platform. Novo responded by withdrawing its lawsuit.
This arrangement provides Hims with a legitimate pathway into the GLP-1 marketplace, albeit with reduced profit margins compared to its compounded alternatives. Hims had established more than 1 million square feet of domestic facility infrastructure, including sterile injectable production capabilities for weight management products. Combining this infrastructure with authorized Wegovy distribution represents a more sustainable business model than the regulatory uncertainty it previously navigated.
Novo Nordisk also benefits from this arrangement. NVO shares have declined 21% year-to-date, facing pressure from competitive forces and pricing challenges. A telehealth distribution alliance enables Novo to connect with patients more efficiently.
Upcoming May 11 Earnings Will Reveal True Performance
The stock’s recent surge precedes a May 11 earnings announcement, and the financial results will present mixed signals. Hims provided guidance for Q1 revenue between $600 million and $625 million. However, Wall Street analysts anticipate EPS of merely $0.06, representing a 70% decline compared to the previous year.
Capital expenditures increased 138% during Q4 2025, while free cash flow reversed to negative $2.57 million compared with positive $59.5 million from the prior year. The company is investing substantially in manufacturing expansion and the upcoming acquisition of Eucalyptus, which generates annual recurring revenue exceeding $450 million.
Full-year 2025 revenue reached $2.35 billion, representing 59% growth driven primarily by the compounded GLP-1 segment. Management now projects approximately 19% growth for the current year, a more moderate trajectory as higher-margin compounded products transition toward the branded Wegovy partnership.
Hims reported over 2.5 million subscribers in its most recent disclosure, with average monthly revenue per subscriber at $83 and subscriber expansion growing at a 13% year-over-year rate.
