Key Takeaways
- Shares of Hims & Hers (HIMS) climbed as high as 49% across five consecutive trading days, including an 11% Monday rally.
- Federal regulators scheduled a July session to review potential relaxation of rules governing 12 peptide compounds, creating possible revenue opportunities for the company.
- Health Secretary RFK Jr. publicly endorsed the peptide initiative, while Hims secured ownership of a peptide production plant in California during February 2025.
- A legal settlement between Hims and Novo Nordisk resulted in an arrangement for the telehealth platform to offer branded Wegovy products.
- First-quarter financial results arrive May 11, with projected earnings per share declining 70% compared to the previous year amid elevated infrastructure investment.
The telehealth provider’s shares experienced a remarkable five-day rally that caught many market observers off guard. Monday’s trading session delivered an 11% gain, completing a stretch where shares appreciated approximately 49%. The stock has now advanced over 125% from its February bottom.
Hims & Hers Health, Inc., HIMS
The dramatic price movement stems from two catalysts: changing peptide regulations and a strategic pharmaceutical partnership.
On April 15, Health Secretary Robert F. Kennedy Jr. revealed that the FDA would conduct an evaluation to potentially remove 12 peptides from a restricted inventory established in 2023. This list had prevented compounding pharmacies from manufacturing specific peptide treatments. Kennedy has publicly championed peptide access, including discussing his personal use during an appearance on the Joe Rogan podcast.
This development carries significance for Hims because the company acquired a peptide production facility located in California during February 2025. Should federal regulators relax current restrictions, the telehealth company would gain substantial capability to manufacture and commercialize peptide treatments. Management has already announced plans for a “longevity specialty” product portfolio launching in 2026 that will include peptides, coenzymes, and GLP therapies.
Strategic Partnership with Novo Nordisk
The second catalyst involves a resolution between Hims and the Danish pharmaceutical manufacturer. The relationship between both entities deteriorated in 2025 following the collapse of an initial collaboration. Novo filed allegations claiming Hims engaged in misleading promotion of “knockoff” Wegovy alternatives, triggering litigation, FDA warning correspondence, and prolonged public confrontation.
March brought a negotiated settlement between the parties. Under the terms, Hims committed to making Novo’s branded GLP-1 medications — both Wegovy injections and oral formulations — priority offerings on its platform. Novo withdrew its legal action in exchange.
This arrangement provides Hims with an authorized pathway in the weight loss medication sector, although profit margins will be narrower compared to compounded alternatives. The company had developed over 1 million square feet of domestic manufacturing capacity, including sterile injectable production for weight management products. Combining this infrastructure with authorized Wegovy distribution creates a more straightforward business model than the previously ambiguous regulatory position.
Novo Nordisk gains advantages from this arrangement as well. NVO shares have declined 21% year-to-date amid competitive pressures and pricing challenges. Access to a telehealth distribution channel enables more direct patient engagement.
May 11 Financial Report Will Provide Clarity
The stock surge precedes a May 11 earnings announcement, where certain metrics will face significant pressure. Company guidance projects Q1 revenue between $600 million and $625 million. Analyst consensus anticipates EPS of merely $0.06, representing a 70% year-over-year decline.
Capital expenditures jumped 138% during Q4 2025, while free cash flow reversed to negative $2.57 million compared with positive $59.5 million twelve months earlier. The company is allocating substantial resources toward manufacturing expansion and a planned acquisition of Eucalyptus, which generates annual recurring revenue exceeding $450 million.
Full-year 2025 revenue reached $2.35 billion, climbing 59% driven by compounded GLP-1 sales. Management now projects approximately 19% growth for the current year, representing deceleration as higher-margin compounded products transition toward the branded Wegovy distribution model.
The subscriber base exceeded 2.5 million in the most recent disclosure, with average monthly revenue per subscriber at $83 and subscriber expansion tracking at 13% year-over-year.
