Potential Wegovy Partnership Could Transform Hims & Hers Growth Trajectory

Hims & Hers Health, Inc. finds itself at a potential inflection point as the telehealth provider engages in advanced discussions with pharmaceutical leader Novo Nordisk regarding distribution rights for the blockbuster weight-loss medication Wegovy. This strategic development emerges alongside the company's latest quarterly earnings, which reveal a familiar pattern of explosive revenue expansion coupled with ongoing profitability challenges.

The company's third-quarter financial results demonstrate remarkable top-line momentum, with revenue surging approximately 50% to reach $599 million. This figure substantially exceeded market expectations, which had projected $580 million. Driving this impressive performance were two key factors: a expanding subscriber base that grew 21% to approach 2.5 million customers, and increased customer spending with average monthly revenue per user climbing from $67 to $80.

However, the earnings picture told a different story. Hims & Hers reported earnings per share of just $0.06, falling short of analyst projections ranging between $0.09 and $0.10. The discrepancy highlights how the company's aggressive growth initiatives and investments into new service areas continue to pressure near-term profit margins.

Strategic Implications of a Novo Nordisk Alliance

Market attention has focused intensely on the potential partnership with Novo Nordisk, which could represent a transformative development for the telehealth platform. A finalized agreement would grant Hims & Hers the rights to distribute both the current injectable form of Wegovy and a future tablet version through its digital healthcare ecosystem.

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

This collaboration would mark a significant strategic achievement, providing access to one of the most sought-after GLP-1 receptor agonists in the rapidly expanding obesity treatment market. The timing is particularly noteworthy given recent tensions between the companies. During Wegovy supply shortages, Hims & Hers had offered more affordable semaglutid alternatives—the active ingredient in Wegovy—through partner pharmacies. A formal distribution agreement would resolve this friction while establishing Hims & Hers as a legitimate channel partner for pharmaceutical innovations.

Forward Guidance and Strategic Initiatives

Looking ahead, management has provided optimistic revenue guidance for full-year 2025, projecting between $2.34 billion and $2.36 billion. The fourth quarter is expected to contribute $605 million to $625 million to that total. Under CEO Andrew Dudum's leadership, the company continues to pursue multiple growth vectors including international expansion through the recent acquisition of Zava and planned longevity service launches scheduled for 2026.

For investors, the central question remains when the company's impressive revenue growth will translate into sustained profitability. A finalized Wegovy distribution agreement could potentially accelerate that transition, provided negotiations conclude successfully and the partnership delivers on its commercial potential.