Stock dip for Hims & Hers this week
Hims & Hers Faces Legal Battle, Stock Sinks
Shares of Hims & Hers, the leading telehealth provider for drugs and medical treatments over the internet, have taken a hit this week, with a 17% decline according to S&P Global Market Intelligence. This drop may be attributed to a looming legal battle with the pharmaceutical company Novo Nordisk, among other factors.
The legal dispute stems from disagreements over Hims & Hers selling patented weight loss drugs. During a shortage, Hims & Hers was permitted to sell these drugs, but now that the shortage is over, the company is breaking the law by selling them at a discount. Novo Nordisk, the original partner of Hims & Hers, ended their partnership due to these disputes.
The legal battle is a significant risk for Hims & Hers management and shareholders. It could potentially harm the company's future revenue growth and profitability. In Q2 2025, Hims & Hers generated a profit and reported over $500 million in revenue, growing 73% year over year. However, this growth was driven by a 30% increase in total subscribers and a 30% increase in spend per active subscriber.
Despite its past success and significant market share gains in the last few years, the current legal battle could negatively impact Hims & Hers' stock performance. It is advised to avoid buying Hims & Hers stock until the dispute with the weight loss drug manufacturers is resolved.
The opponent in the current legal dispute is Ridgeback Therapeutics. Hims & Hers offers telehealth services for basic pharmaceuticals, including hair loss, sexual wellness, and weight loss drugs. As the leading telehealth provider, it has made a substantial impact in the industry, providing accessible healthcare to millions.
However, the legal battle with Novo Nordisk is a setback for the company. Hims & Hers is currently facing a lawsuit for selling knockoffs of weight loss drug formulas. If the legal battle is not likely to end favorably for Hims & Hers, it could have long-term consequences for the company.
Despite the challenges, Hims & Hers has a trailing revenue of $2 billion, up over 1,000% in the last five years. The company continues to innovate and expand its services, offering a convenient and affordable solution for healthcare needs. It remains to be seen how this legal battle will unfold and what impact it will have on Hims & Hers' future.
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