The potential impact of Novo Nordisk's major benefits on Hims

This morning, Novo Nordisk announced a major breakthrough: Novo Nordisk's Wegovy® pill, as the first oral GLP-1 receptor agonist for weight management, has been approved by the FDA. The pill is designed to reduce excess weight and lower cardiovascular risks. It is expected to launch in the U.S. in January 2026, while regulatory reviews in Europe and other regions are still ongoing.

Does Hims currently have a partnership with Novo Nordisk?

Hims (Hims & Hers Health) currently has no partnership with Novo Nordisk. The latest update from the November earnings call is that discussions are ongoing, but no official announcement has been made.

Novo Nordisk announced on June 23, 2025, the termination of its partnership with Hims, which was originally launched in late April to sell the weight-loss drug Wegovy through the Hims platform. The termination was due to Novo Nordisk accusing Hims of allegedly violating federal laws by conducting large-scale compounded drug sales disguised as "personalized" treatments, as well as engaging in deceptive marketing that could endanger patient safety. This news caused Hims' stock price to plummet by 25%-35%, and Novo Nordisk's stock also saw a temporary decline.

Although Hims' CEO responded by calling the allegations "misleading" and stated that Wegovy would still be available on the platform, Novo Nordisk has confirmed that it will no longer supply the drug directly through NovoCare pharmacies.

Andrew Dudum, co-founder and CEO of Hims & Hers, told investors during the company's Q3 earnings call: "Overall, I believe that providing patients with a broad, diverse range of options is the key to success. Therefore, we are very pleased to collaborate with Novo Nordisk again on the oral pill, hoping it will receive FDA approval and have its commercial dosage determined." He added: "I believe they and other companies will introduce more innovative products. Additionally, significant progress has been made in biotechnology, with Phase II and III clinical trials underway to develop next-generation GLP-1, GIP dual, and triple agonists."

Potential impact of the new drug launch on Hims:

1. Direct market implications: Oral Wegovy makes GLP‑1 more 'internet-friendly'
   The approval of oral Wegovy (once-daily) means the barrier to using GLP‑1 is further lowered: fears of injections, injection training, cold chain logistics, and adherence issues are reduced, potentially expanding the reachable population. At the same time, the emphasis on its use for weight loss and reducing major adverse cardiovascular events (MACE) will strengthen the medical narrative of "long-term chronic disease management" and payer acceptance.

      For platforms like Hims, which focus on online consultations and subscription-based fulfillment, this typically brings two things:

• A wider funnel: More users "willing to try GLP‑1" enter the online channel (especially those previously hesitant about injections).
• Stronger long-term engagement: The cardiovascular benefit label reinforces the rationale for "continuous medication/follow-up," making it easier for the platform to turn weight loss from a short-term program into a long-term membership relationship.

2) Key benefits for Hims: Higher accessibility + stronger branded partnership potential
2.1 Demand side: Higher acquisition and conversion probability
Oral formulations are often more acceptable to "first-time users" than injectables, so Hims' weight management business may benefit at the acquisition level: lower psychological barriers → higher click-to-consultation and consultation-to-prescription conversion rates. This is even more pronounced under the news hype and the "first oral GLP-1 weight-loss drug" narrative.

2.2 Supply side: If it can enter the 'branded drug supply/distribution' space, quality and compliance certainty improve
Hims has publicly announced ongoing discussions with Novo Nordisk to include FDA-approved Wegovy in its platform supply and service pathway (as the first step in a longer-term collaboration roadmap). If oral Wegovy can later be included in similar partnerships/channel supplies, Hims may gain:

• More stable branded drug sources (compared to the "scarce + unevenly distributed" period)
• Stronger compliance certainty and user trust (branded drugs vs. compounded/alternative solutions)
• Cross-selling and retention improvements (nutrition, exercise, follow-ups, lab tests, etc.)

3) Key risks and challenges: Pricing, competition, and the weakening of 'compounded alternatives' logic
3.1 Price/reimbursement remains the biggest variable: Oral ≠ cheap
The news does not mean prices will drop immediately. For Hims, if oral Wegovy remains expensive and insurance coverage is limited, the platform may face dual pressures:

• Users want "more convenient oral options" but are price-sensitive to out-of-pocket costs → limited conversions, increased churn
• Competitors (traditional chain pharmacies, integrated healthcare systems, e-commerce pharmacies) will also be more aggressive in handling oral prescriptions → rising customer acquisition costs

3.2 More crowded competitive landscape: Oral forms are more suitable for large-scale distribution
The supply, cold chain, and usage guidance of injectables had somewhat "raised the bar for online fulfillment." With oral formulations, the distribution advantages of large channels (payer systems, pharmacy networks, employer benefits) become more pronounced. This will force Hims to rely more on its differentiated capabilities: better user experience, follow-up systems, adherence management, and deeper supply partnerships with pharma/pharmacies.

3.3 The appeal of 'compounded/alternative solutions' may decline (affecting part of the revenue structure)
As branded oral drugs launch and gradually scale, some users will prefer the "branded + clear instructions/adverse effect management" path, weakening price-driven alternative demand. If Hims relies more on non-branded solutions in its GLP-1 business, it will need to shift its revenue structure faster toward a "branded drugs + management services" combination in the medium to long term.

Comprehensive assessment of Hims: Short-term sentiment is positive, medium-term depends on "supply and payment," long-term depends on "whether weight loss can become a chronic disease platform"
Below is a more "investment-focused" framework to summarize the impact points:

Key Points

• Whether Hims can include oral Wegovy in its "branded drug supply" system (and the supply scale/state coverage/delivery experience).
• The actual pricing of oral Wegovy and the speed of insurance coverage expansion: This determines whether "demand release" is explosive or gradual.
• Changes in customer acquisition cost (CAC) and retention (prescription renewal/membership months): Oral adoption will intensify competition; ultimately, unit economics must stabilize.

$Hims & Hers Health(HIMS.US) $Defiance Daily Target 2X Long HIMS ETF(HIMZ.US) $Novo Nordisk AS(NVO.US)