Hims & Hers Health Faces Challenges In Legal Minefield Over Weight-Loss Drugs -- Market Talk

Dow Jones
2025/06/30

0910 ET - A key question for Hims & Hers Health is whether it could continue to offer compounded treatments if a lawsuit is filed against it by Novo Nordisk, say Morgan Stanley analysts in a research note. Novo earlier this month abruptly ended its partnership with Hims & Hers after accusing it of illegally selling cheaper copycats of its Wegovy weight-loss drug and engaging in deceptive marketing. The analysts note that five of six defendants in lawsuits by Eli Lilly against compounders are continuing to offer compounded GLP-1s. Regardless, the analysts say a "a bear-case narrative for HIMS has resurfaced," and they expect these developments to be an overhang on the stock into Q2 earnings. Hims & Hers sold off 23% last week, but has more than doubled so far this year. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

June 30, 2025 09:10 ET (13:10 GMT)

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