Key Takeaways
- Hims & Hers (HIMS) stock experienced a remarkable rally, climbing up to 49% across five consecutive trading days, including an 11% boost on Monday.
- Federal regulators revealed plans for a July session to evaluate loosening controls on 12 specific peptides, potentially creating fresh revenue streams for Hims.
- Health Secretary RFK Jr. publicly endorsed the peptide initiative, while Hims had already secured a California peptide production plant in February 2025.
- A settlement between Hims and Novo Nordisk resolved their legal conflict, establishing Hims as a distributor for branded Wegovy products.
- First-quarter financial results arrive May 11, with earnings per share projected to decline 70% year-over-year amid aggressive capital investments.
Shares of Hims & Hers Health experienced an extraordinary trading week that caught many market watchers off guard. The telehealth platform’s equity rose as high as 11% during Monday’s session, completing a remarkable five-day stretch that delivered approximately 49% gains. The stock has now rocketed more than 125% above its February bottom.
Hims & Hers Health, Inc., HIMS
The dramatic price movement stemmed from two catalysts: evolving peptide regulations and a strategic partnership with a major pharmaceutical player.
On April 15, Health Secretary Robert F. Kennedy Jr. revealed that the FDA plans to reassess its decision to remove 12 peptides from availability for compounding pharmacies. This restriction list, implemented in 2023, had prevented compounding facilities from manufacturing specific peptide-based treatments. Kennedy has been an outspoken advocate for peptide therapies, even disclosing during a conversation with Joe Rogan that he uses them personally.
This regulatory development holds significant implications for Hims because the company strategically acquired a peptide production facility in California during February 2025. Should the FDA reverse or modify these restrictions, Hims would possess a competitive advantage to manufacture and commercialize peptide therapies on a large scale. The company has already announced plans for a “longevity specialty” product portfolio launching in 2026 that will include peptides, coenzymes and GLP treatments.
Settlement and Partnership with Novo Nordisk
The second major catalyst involves the resolution between Hims and pharmaceutical giant Novo Nordisk. These two companies experienced a contentious falling out in 2025 following the breakdown of their initial collaboration. Novo filed legal action against Hims, alleging deceptive marketing practices around “knockoff” alternatives to Wegovy, which resulted in litigation, FDA warning correspondence, and an extended public feud.
By March, both parties negotiated a comprehensive settlement. Under the new arrangement, Hims committed to prioritizing distribution of Novo’s authentic GLP-1 medications — including Wegovy injections and the oral formulation — across its digital platform. Novo withdrew its lawsuit in exchange.
This partnership provides Hims with a legitimate pathway into the GLP-1 marketplace, albeit with thinner profit margins compared to its previously compounded alternatives. Hims had developed over 1 million square feet of domestic manufacturing space, including sterile injectable production capabilities for weight management products. Combining this infrastructure with authorized Wegovy distribution creates a more sustainable business model than the regulatory uncertainty it previously navigated.
Novo Nordisk also benefits strategically from this arrangement. NVO stock has declined 21% year-to-date, facing pressure from competitive forces and pricing challenges. A telehealth distribution channel enables Novo to access patients more efficiently.
Upcoming Earnings Report Will Determine Sustainability
The stock’s impressive rally precedes a May 11 earnings announcement, and the financial metrics won’t look favorable across all categories. Hims projected Q1 revenue between $600 million and $625 million. However, Wall Street consensus anticipates EPS of merely $0.06, representing a steep 70% decline compared to the prior year.
Capital expenditures surged 138% during Q4 2025, while free cash flow reversed to negative territory at -$2.57 million versus a positive $59.5 million twelve months earlier. The company continues investing aggressively in manufacturing expansion and the pending Eucalyptus acquisition, which generates annual recurring revenue exceeding $450 million.
Full-year 2025 revenue reached $2.35 billion, advancing 59% driven primarily by the compounded GLP-1 segment. Management now forecasts approximately 19% growth for the current year, a more modest trajectory as higher-margin compounded products give way to the branded Wegovy distribution model.
Hims reported over 2.5 million subscribers in its most recent disclosure, generating $83 in monthly revenue per subscriber with subscription growth advancing at 13% year-over-year.
