Short seller says Hims 'wiped the floor' with Novo
When Hims & Hers Health, Inc. (HIMS) and Novo Nordisk (NVO) announced a partnership this week, it marked a stunning conclusion to what had been a bitter standoff between the two companies, which had culminated with Novo suing its rival over its copycat GLP-1 drug.
Novo filed a patent infringement lawsuit against Hims last month after its rival released a compounded copycat version of its Wegovy GLP-1 weight loss tablet. Novo accused Hims of "duping consumers and healthcare professionals as to the clinical benefits and safety of these unapproved drugs."
Two days before Novo filed its lawsuit, Hims said that it was pulling its compounded semaglutide pill from the market, but Novo carried on with its suit until the two companies reached their agreement.
Hims had also been facing mounting pressure from the Food and Drug Administration (FDA) over its marketing around its copycat compounded weight-loss drugs.
After Novo had first threatened to sue Hims, the FDA released a statement announcing its plans "to take decisive steps to restrict GLP-1 active pharmaceutical ingredients (APIs) intended for use in non-FDA-approved compounded drugs that are being mass-marketed by companies — including Hims & Hers and other compounding pharmacies — as similar alternatives to FDA-approved drugs."
The FDA temporarily allowed compounded GLP-1 drugs during a supply shortage when Ozempic first hit the market and became an instant hit with consumers, but after the shortage ended, those alternatives are technically illegal.
Under the agreement the two companies announced on Monday, Hims & Hers will offer Novo Nordisk's Ozempic injection weight-loss solution and its Wegovy weight-loss tablets, for the "same affordable self-pay prices as other telehealth platforms."
Novo said in a press release announcing the partnership that it welcomes "Hims & Hers shifting their GLP-1 business model to focus on increasing access to affordable, branded FDA-approved medicines."
HIMS shares surged over 40% on Monday following the announcement of the partnership. It gained more than 10% on Wednesday, showing the rally is still being sustained.
Barclays analyst Glen Santangelo raised his price target for HIMS to $29 from $25, noting that the landmark deal the company signed with Novo removes a significant legal cloud that had been hanging over Hims. He also said that the market was still “underappreciating Hims’ opportunity from new products," which explains his markup on the price target.
Meanwhile, Sam Koppelman, co-founder of Hunterbrook Capital, a short seller that shorted HIMS in 2024, said in a post on X that Hims founder and CEO Andrew Dudum was the winner in the agreement with Novo.
“I have to say, @AndrewDudum wiped the floor with Novo,” he said. “He mass compounded for a year. When finally sued, he got a desperate $NVO to settle before even a motion to dismiss. FDA folded.”
Koppelman added that "there is nothing stopping $HIMS from continuing to sell compounded GLPs."
Hunterbrook Capital issued a short report on Hims in June 2024 in which it said that the company was selling "knockoff GLP-1" weight loss drugs through a "loophole" that could be rescinded at any time.
The report also alleged that Hims was relying on a sole supplier for its copycat drugs who had previously unreported ties to bankruptcy and fraud.
In a separate post on X, Koppelman said that Dudum “completely outplayed Novo and will face ~no consequences for essentially running a drug cartel.”