• In recent days, Hims & Hers Health ended its key pharmaceutical partnership with Novo Nordisk, losing access to branded GLP-1 weight-loss drugs and shifting emphasis toward compounded alternatives amid regulatory and margin pressures.
• At the same time, analysts have highlighted slowing growth expectations, rising competition in telehealth, and insider share sales, prompting investors to reassess the company’s longer-term positioning.
• Next, we’ll examine how the end of the Novo Nordisk partnership shapes Hims & Hers Health’s investment narrative and future growth drivers.

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What Is Hims & Hers Health's Investment Narrative?

To own Hims & Hers Health today, you have to believe its direct-to-consumer telehealth model can keep attracting and retaining patients even as growth expectations cool and competition heats up. The end of the Novo Nordisk partnership is a real test of that belief, because it removes a branded GLP-1 weight-loss hook that had become an important narrative driver and pushes the company deeper into compounded drugs just months after an FDA warning on compounded semaglutide. That shift puts more weight on newer initiatives like Labs, menopause care and international expansion to carry near-term excitement, while also raising questions about margin durability and regulatory oversight. Layer on insider selling, a rich earnings multiple and high short interest, and the stock now sits in more of a “show-me” phase than earlier guidance implied.

However, one risk in particular could matter more than many investors might expect. Despite retreating, Hims & Hers Health's shares might still be trading above their fair value and there could be some more downside. Discover how much.

Exploring Other Perspectives

Across 58 fair value estimates from the Simply Wall St Community, Hims & Hers valuations span roughly US$29 to over US$170, reflecting sharply different expectations as the Novo Nordisk exit and GLP 1 regulatory overhang reshape the company’s near term tests and potential earnings path.

Explore 58 other fair value estimates on Hims & Hers Health - why the stock might be worth over 5x more than the current price!

Build Your Own Hims & Hers Health Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hims & Hers Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hims & Hers Health research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hims & Hers Health's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.