Hims & Hers Health (HIMS) stock plunged following its abrupt breakup with Novo Nordisk, but the fallout may end up working in the telehealth company’s favor.
As InvestorsObserver reported earlier, the split could clear the way for Hims to carve out its own slice of the booming weight-loss drug market, starting in Canada.
That pivot began Wednesday after reports confirmed that Novo Nordisk’s patent for semaglutide — the active ingredient in Ozempic and Wegovy — is set to expire in Canada this January.
Hims now plans to launch generic versions of the drug in Canada in 2026.
“Canada is a major opportunity to show what affordable, high-quality weight loss care can look like,” said Hims & Hers CEO and co-founder Andrew Dudum.
The move could pay off. Canada’s semaglutide market generated $1.18 billion in revenue last year and is projected to triple to $4.03 billion by 2035, according to Grand View Research.
Yet no generic version of the drug is currently available there.
HIMS stock flexes overseas ambitions
The Canada expansion comes just weeks after Hims acquired U.K.-based digital health platform Zava, adding 1.3 million members and giving the company a major foothold in Europe.
That deal alone boosted Hims’ active customer base by more than 50%.
Canada offers a closer, more familiar market and one that’s especially receptive to generics. In 2022, generic prescriptions accounted for 73% of all prescriptions in Canada.
According to the Canadian Generic Pharmaceutical Association, every 1% increase in generic drug use saves Canadians an estimated $703 million annually.
With a generic Ozempic product in the works, Hims is well positioned to meet that demand, especially as Canada’s telehealth prescription market is projected to grow at 21.3% annually over the next five years.
HIMS stock surged on the news and is now trading back above $50 per share. Despite recent volatility, the stock is up more than 100% year-to-date and 150% over the past 12 months.
Hims joined the S&P SmallCap 600 Index in October.
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