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Can Novo Nordisk's Hims & Hers Deal Revive Its GLP-1 Momentum?
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Key Takeaways
Novo Nordisk partnered with HIMS to offer Ozempic and Wegovy via telehealth at self-pay prices nationwide.
HIMS will stop advertising compounded GLP-1 drugs and transition patients to FDA-approved alternatives.
Novo Nordisk shares also reacted to an FDA warning letter tied to post-marketing safety reporting processes.
Earlier this week, Novo Nordisk (NVO - Free Report) announced a partnership with telehealth platform Hims & Hers Health (HIMS - Free Report) to expand access to its FDA-approved semaglutide medicines in the United States. Under the deal, the telehealth provider will offer Ozempic injections (for diabetes) and Wegovy injections and tablets (for obesity) at the same self-pay pricing available on other digital healthcare platforms. Patients using Hims & Hers will be able to access multiple approved doses and formulations through telehealth consultations and nationwide pharmacy networks, potentially broadening access to NVO’s branded GLP-1 therapies, which have demonstrated cardiovascular benefits.
The partnership surprised the market and sent HIMS shares sharply higher. The reaction was notable because just weeks earlier, Novo Nordisk had reportedly pursued legal action after Hims & Hers announced plans to enter the weight-loss market with a compounded oral semaglutide pill positioned as a needle-free alternative to injectable therapies such as Wegovy. That move came shortly after NVO secured approval for its much-anticipated Wegovy pill, raising competitive tensions between the companies.
Against this backdrop, the new agreement signals a shift in the relationship between the two firms. Novo Nordisk shares also rose modestly as investors viewed the deal as a strategic step to steer patients away from compounded GLP-1 products and toward FDA-approved branded medicines. By aligning Hims & Hers’ GLP-1 offerings with regulated therapies, the partnership could help NVO expand distribution through digital healthcare channels while reinforcing the safety and efficacy advantages of its approved treatments.
As part of the agreement, HIMS will stop advertising compounded GLP-1 products and transition existing patients to FDA-approved alternatives when clinically appropriate. In return, Novo Nordisk will dismiss its patent infringement lawsuit against Hims & Hers while retaining the right to refile. The arrangement could also help curb the widespread availability of compounded GLP-1 versions in the United States, which proliferated during supply shortages and weighed on NVO’s sales and profitability in 2025.
The broader patient reach enabled by the HIMS partnership could also strengthen Novo Nordisk’s position against rival Eli Lilly (LLY - Free Report) . Lilly markets tirzepatide-based GLP-1 therapies as Mounjaro for diabetes and Zepbound for obesity, which compete directly with Ozempic and Wegovy and have eroded NVO’s market share over the past year. Meanwhile, LLY’s oral GLP-1 candidate, orforglipron, is under FDA review and, if approved, would compete directly with the oral version of Wegovy, intensifying rivalry in the rapidly expanding obesity and diabetes treatment markets.
The stock price gain posted by NVO following the HIMS deal was partly offset after the company disclosed that it had received a warning letter from the FDA tied to a post-marketing adverse drug experience inspection conducted at its Plainsboro, New Jersey, facility in early 2025. The inspection had previously resulted in a Form FDA 483 outlining observations related to post-marketing safety reporting processes.
Novo Nordisk said it has been addressing the observations through a corrective and preventive action plan and has provided multiple updates to the FDA over the past year. The agency acknowledged the company’s efforts but requested additional details to confirm ongoing regulatory compliance. Importantly, the warning letter does not raise concerns about the quality or safety of NVO’s medicines, and the company said it does not expect the matter to affect production or its previously issued 2026 financial guidance.
Competition Heating Up in the Obesity Space
Eli Lilly is Novo Nordisk’s formidable rival in the diabetes and obesity space. Despite being on the market for just over three years, Mounjaro and Zepbound have seen exceptional sales growth, becoming LLY’s key top-line drivers. In 2025, the drugs generated combined sales of $36.5 billion, comprising around 56% of the company’s total revenues.
The obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity. Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) , are also advancing GLP-1-based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the third quarter of 2026.
NVO Stock Price, Valuation & Estimates
In the past six months, Novo Nordisk shares have lost 29.4% against the industry’s 20.8% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 11.63 forward earnings, which is lower than 18.06 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined from $3.54 to $3.35 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have declined from $3.75 to $3.26.
View the Zacks #1 Rank List
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Can Novo Nordisk's Hims & Hers Deal Revive Its GLP-1 Momentum?
Key Takeaways
Earlier this week, Novo Nordisk (NVO - Free Report) announced a partnership with telehealth platform Hims & Hers Health (HIMS - Free Report) to expand access to its FDA-approved semaglutide medicines in the United States. Under the deal, the telehealth provider will offer Ozempic injections (for diabetes) and Wegovy injections and tablets (for obesity) at the same self-pay pricing available on other digital healthcare platforms. Patients using Hims & Hers will be able to access multiple approved doses and formulations through telehealth consultations and nationwide pharmacy networks, potentially broadening access to NVO’s branded GLP-1 therapies, which have demonstrated cardiovascular benefits.
The partnership surprised the market and sent HIMS shares sharply higher. The reaction was notable because just weeks earlier, Novo Nordisk had reportedly pursued legal action after Hims & Hers announced plans to enter the weight-loss market with a compounded oral semaglutide pill positioned as a needle-free alternative to injectable therapies such as Wegovy. That move came shortly after NVO secured approval for its much-anticipated Wegovy pill, raising competitive tensions between the companies.
Against this backdrop, the new agreement signals a shift in the relationship between the two firms. Novo Nordisk shares also rose modestly as investors viewed the deal as a strategic step to steer patients away from compounded GLP-1 products and toward FDA-approved branded medicines. By aligning Hims & Hers’ GLP-1 offerings with regulated therapies, the partnership could help NVO expand distribution through digital healthcare channels while reinforcing the safety and efficacy advantages of its approved treatments.
As part of the agreement, HIMS will stop advertising compounded GLP-1 products and transition existing patients to FDA-approved alternatives when clinically appropriate. In return, Novo Nordisk will dismiss its patent infringement lawsuit against Hims & Hers while retaining the right to refile. The arrangement could also help curb the widespread availability of compounded GLP-1 versions in the United States, which proliferated during supply shortages and weighed on NVO’s sales and profitability in 2025.
The broader patient reach enabled by the HIMS partnership could also strengthen Novo Nordisk’s position against rival Eli Lilly (LLY - Free Report) . Lilly markets tirzepatide-based GLP-1 therapies as Mounjaro for diabetes and Zepbound for obesity, which compete directly with Ozempic and Wegovy and have eroded NVO’s market share over the past year. Meanwhile, LLY’s oral GLP-1 candidate, orforglipron, is under FDA review and, if approved, would compete directly with the oral version of Wegovy, intensifying rivalry in the rapidly expanding obesity and diabetes treatment markets.
The stock price gain posted by NVO following the HIMS deal was partly offset after the company disclosed that it had received a warning letter from the FDA tied to a post-marketing adverse drug experience inspection conducted at its Plainsboro, New Jersey, facility in early 2025. The inspection had previously resulted in a Form FDA 483 outlining observations related to post-marketing safety reporting processes.
Novo Nordisk said it has been addressing the observations through a corrective and preventive action plan and has provided multiple updates to the FDA over the past year. The agency acknowledged the company’s efforts but requested additional details to confirm ongoing regulatory compliance. Importantly, the warning letter does not raise concerns about the quality or safety of NVO’s medicines, and the company said it does not expect the matter to affect production or its previously issued 2026 financial guidance.
Competition Heating Up in the Obesity Space
Eli Lilly is Novo Nordisk’s formidable rival in the diabetes and obesity space. Despite being on the market for just over three years, Mounjaro and Zepbound have seen exceptional sales growth, becoming LLY’s key top-line drivers. In 2025, the drugs generated combined sales of $36.5 billion, comprising around 56% of the company’s total revenues.
The obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity. Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) , are also advancing GLP-1-based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the third quarter of 2026.
NVO Stock Price, Valuation & Estimates
In the past six months, Novo Nordisk shares have lost 29.4% against the industry’s 20.8% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Image Source: Zacks Investment Research
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 11.63 forward earnings, which is lower than 18.06 for the industry. The stock is trading much below its five-year mean of 29.25.
NVO Stock Valuation
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined from $3.54 to $3.35 per share over the past 60 days. During the same time frame, Novo Nordisk’s 2027 earnings estimates have declined from $3.75 to $3.26.
NVO Estimate Movement
Image Source: Zacks Investment Research
Novo Nordisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.