Hims & Hers Forges Unexpected Partnership for Weight Loss Medication

In a strategic pivot that caught market observers by surprise, telehealth provider Hims & Hers has entered discussions with pharmaceutical heavyweight Novo Nordisk regarding distribution rights for the sought-after weight management drug Wegovy. This development follows the company's recent earnings release, which revealed both impressive revenue growth and a minor earnings disappointment.

The negotiations represent a significant directional shift for the digital health platform. Previously, Hims & Hers had drawn criticism from the Danish pharmaceutical giant for offering compounded versions of semaglutid—the active ingredient in Wegovy. A formal distribution agreement would not only legitimize the company's position in the lucrative weight loss market but also substantially mitigate regulatory concerns with the U.S. Food and Drug Administration.

The potential arrangement extends beyond the current injectable formulation of Wegovy to include a future tablet version of the GLP-1 medication. Such a partnership would grant Hims & Hers direct access to one of today's most competitive pharmaceutical sectors.

Quarterly Performance: Strong Growth Amid Earnings Shortfall

Hims & Hers demonstrated robust operational momentum in its third-quarter results, with revenue surging 49% to approximately $599 million. The company expanded its subscriber base by 21% to nearly 2.5 million active users, while average monthly revenue per user climbed from $67 to $80.

Should investors sell immediately? Or is it worth buying Hims & Hers?

Despite these positive indicators, the company reported earnings of $0.06 per share, falling short of analyst projections. Management nonetheless expressed confidence by raising its full-year EBITDA guidance to a range between $307 million and $317 million.

Broadening Healthcare Services

Beyond the potential Wegovy agreement, Hims & Hers continues to diversify its service offerings. The platform is introducing new treatment solutions addressing male hormone therapy and menopause management for female patients. Additionally, the company plans to launch comprehensive laboratory testing services before year-end.

Long-term strategic objectives remain unchanged, with the company targeting $6.5 billion in annual revenue and $1.3 billion in EBITDA by 2030.