Key Takeaways
- Shares of HIMS climbed 7% following the announcement that Eli Lilly’s Zepbound and additional GLP-1 medications are now available on its platform
- Healthcare providers using the platform gained access to prescribe Zepbound vials, KwikPen, and Foundayo through LillyDirect pharmacy
- The expansion comes after a previous agreement with Novo Nordisk that brought Wegovy injections and oral alternatives to the platform
- J.P. Morgan launched coverage with an “Overweight” designation and set a $35 share price objective
- Analysts at JPM forecast revenues climbing from $2.3B in 2025 to beyond $3.2B in 2027, with EBITDA reaching $414M
Hims & Hers Health experienced a 7% surge on Thursday following the telehealth platform’s announcement that it would incorporate weight management medications from Eli Lilly into its offerings.
Hims & Hers Health, Inc., HIMS
Medical professionals utilizing the Hims & Hers ecosystem now have the capability to write prescriptions for Zepbound vials, KwikPen devices, and Foundayo. These prescriptions are fulfilled via the LillyDirect pharmacy network, offering self-pay pricing structures for Hims & Hers clientele.
This development provides licensed healthcare practitioners on the platform with streamlined access to connect their patients with FDA-sanctioned GLP-1 treatment options.
The recent collaboration builds upon a partnership unveiled in the previous month with Novo Nordisk. That agreement enabled Hims & Hers members to obtain Wegovy injectable formulations and oral medication alternatives.
Combined, these two agreements signal a strategic transformation in the company’s approach to U.S. weight management services. Company representatives attribute this strategic shift to increasing consumer demand and evolving marketplace conditions surrounding GLP-1 pharmaceutical products.
The weight management program encompasses round-the-clock care team availability, customized nutritional guidance, ongoing clinical monitoring, and community-based support through its Weight Loss member network.
According to Hims & Hers, the objective is to provide diverse treatment pathways customized to each patient’s unique medical background and wellness objectives.
Wall Street Firm Launches Coverage With Bullish Stance
The equity received additional momentum on Friday when J.P. Morgan launched coverage with an “Overweight” recommendation and established a $35 price objective.
Analysts identified the Novo Nordisk collaboration as a pivotal moment for the company’s weight-management division, noting it minimizes regulatory exposure associated with compounded GLP-1 products while expanding access to branded pharmaceutical options.
J.P. Morgan calculates that HIMS is positioned to surpass 100,000 monthly Wegovy prescriptions, which would generate an annualized revenue stream of approximately $350–$400 million from that single product line.
The investment bank also highlighted peptide-based treatment options as a significant long-term expansion opportunity. With U.S. regulatory authorities evaluating approval for large-scale compounding of multiple peptides, Hims & Hers’ proprietary manufacturing capabilities could position it favorably in the market.
Financial Projections and Expansion Trajectory
J.P. Morgan anticipates revenues expanding from $2.3 billion in 2025 to more than $3.2 billion by 2027, with EBITDA approaching $414 million. The company has internally set targets for exceeding 20% annual revenue expansion through 2030.
Revenue acceleration is anticipated to gain momentum in the latter portion of 2026 as emerging specialty areas achieve scale and branded product offerings enhance customer unit economics.
Nevertheless, uncertainties persist. The equity ranks among the most heavily shorted in its sector. Market participants express concerns regarding decelerating growth rates, escalating customer acquisition expenses, and competitive pressure from Amazon and telehealth competitor Ro.
J.P. Morgan recognized these headwinds but concluded that the present valuation inadequately captures the company’s expansion possibilities.
HIMS maintains approximately 2.5 million subscribers spanning weight management, sexual wellness, and dermatological services. Its vertically integrated business model — encompassing medical providers, pharmacy operations, and manufacturing facilities — was underscored by J.P. Morgan as a crucial competitive differentiator.
At the time of writing, Novo Nordisk (NVO) was up 5.53% and Eli Lilly (LLY) was down 2.84% on the day.
