Novo Nordisk Shares Surge After Hims Withdraws Weight-Loss Pill
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3h ago
0mins
Should l Buy HIMS?
Source: Yahoo Finance
- Significant Stock Surge: Novo Nordisk shares rose over 8% on Monday, reaching a market peak, primarily driven by Hims' withdrawal of its $49 compounded weight-loss pill, indicating a rebound in market confidence towards Novo.
- Legal Pressure Impact: Hims announced the discontinuation of the drug on Saturday under legal pressure from Novo and the FDA, reflecting the regulatory body's strict oversight of unauthorized compounded medications, which may further influence market competition dynamics.
- Market Value Fluctuation: Following a loss of approximately $50 billion in market value last week due to unprecedented pricing pressures, the stock rebound indicates renewed investor confidence, despite the company's forecast of a potential 13% decline in revenue and profits by 2026.
- Intensified Competition: With Eli Lilly leading in U.S. prescription trends, Novo Nordisk faces increasing competitive pressure, particularly in the high-margin obesity drug market, suggesting that future market dynamics will significantly impact its performance.
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Analyst Views on HIMS
Wall Street analysts forecast HIMS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HIMS is 42.88 USD with a low forecast of 29.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 23.480
Low
29.00
Averages
42.88
High
85.00
Current: 23.480
Low
29.00
Averages
42.88
High
85.00
About HIMS
Hims & Hers Health, Inc. provides a consumer-first platform, which helps customers to fulfill their health and wellness needs. Its platform includes access to a provider network, a clinically focused electronic medical record system, digital prescriptions, cloud pharmacy fulfillment, and personalization capabilities. Its digital platform enables access to treatments for a range of chronic conditions, including those related to sexual health, hair loss, dermatology, mental health, and weight loss. It connects patients to licensed healthcare professionals who can prescribe medications when appropriate and prescriptions are fulfilled online through licensed pharmacies on a subscription basis. It also offers access to a range of health and wellness products designed to meet individual needs, which can include curated prescription and non-prescription products. Through its mobile applications, consumers can access a range of educational programs, wellness content, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
- Market Reaction: Following Hims & Hers' announcement to halt the sale of its knockoff Wegovy pill, shares of Novo Nordisk surged 7% in premarket trading, while HIMS shares plummeted 16%, indicating a strong market response to the news.
- Legal Threats: Faced with potential legal action and an FDA response, Hims & Hers decided to stop offering this treatment after having 'constructive conversations' with industry stakeholders, reflecting the increasingly stringent regulatory environment.
- Drug Regulation: While compounded drugs are generally more affordable, the lack of FDA safety and quality reviews necessitates a doctor's prescription for consumers, which challenges market trust in these products and raises concerns about their efficacy.
- Market Dynamics: The $49 pricing strategy by Hims & Hers was deemed to exceed legal boundaries, especially as the national shortage for Wegovy and Ozempic is no longer applicable, highlighting the risks in the company's market strategy.
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- Investor Sentiment: As the stock price increases, investor sentiment may become more positive, leading to increased capital inflow and enhancing the company's market position.
- Future Outlook: The rise in STMicroelectronics' stock price may signal positive developments in the company's technological innovation and market demand, further solidifying its competitiveness in the global semiconductor market.
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- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
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- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
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Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Stock Futures Edge Up as Investors Await Economic Data and Earnings Reports
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- Hims & Hers Stock Plunge: Hims & Hers Health (HIMS) shares fell 13% after the company announced it would stop offering a compounded version of Novo Nordisk's Wegovy (semaglutide) pill due to FDA scrutiny and industry pressure, raising broader concerns about compounded GLP-1 offerings.
See More
Hims & Hers Halts Sale of Knockoff Wegovy Pill Amid Legal Threats
- Market Reaction: Following Hims & Hers' announcement to halt the sale of its knockoff Wegovy pill, shares of Novo Nordisk surged 7% in premarket trading, while HIMS shares plummeted 16%, indicating a strong market response to the news.
- Legal Threats: Faced with potential legal action and an FDA response, Hims & Hers decided to stop offering this treatment after having 'constructive conversations' with industry stakeholders, reflecting the increasingly stringent regulatory environment.
- Drug Regulation: While compounded drugs are generally more affordable, the lack of FDA safety and quality reviews necessitates a doctor's prescription for consumers, which challenges market trust in these products and raises concerns about their efficacy.
- Market Dynamics: The $49 pricing strategy by Hims & Hers was deemed to exceed legal boundaries, especially as the national shortage for Wegovy and Ozempic is no longer applicable, highlighting the risks in the company's market strategy.
See More
STMicroelectronics Shares Rise 4.3% in Pre-Market Trading
- Stock Performance: STMicroelectronics shares rose 4.3% in pre-market trading to $31.13, indicating optimistic market sentiment regarding the company's future performance, which may attract more investor interest.
- Market Dynamics: The upward trend in STMicroelectronics' stock could influence the performance of other related tech stocks, particularly in the semiconductor sector, further boosting investor confidence in the industry.
- Investor Sentiment: As the stock price increases, investor sentiment may become more positive, leading to increased capital inflow and enhancing the company's market position.
- Future Outlook: The rise in STMicroelectronics' stock price may signal positive developments in the company's technological innovation and market demand, further solidifying its competitiveness in the global semiconductor market.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Wall Street Futures Steady as Investors Await Economic Data
- Tech Stock Decline: Concerns over AI have led to a decline in tech stocks over the past week, putting pressure on the market as investors await crucial economic data and hints from the Federal Reserve regarding potential rate cuts.
- Dow Jones Performance: The Dow Jones closed above 50,000 points for the first time on Friday, posting significant weekly gains, indicating a rotation of funds into other sectors and boosting investor confidence.
- Economic Data Focus: Key economic releases, including the nonfarm payrolls report and consumer price index, are set to be released this week, which could influence the Fed's rate decisions, with markets pricing in the first rate cut potentially in June.
- Stock Movements: Eli Lilly shares rose 2.1% in premarket trading, while Hims & Hers dropped 14% after canceling a weight-loss pill launch due to FDA legal threats, highlighting market sensitivity to regulatory risks.
See More
Hims & Hers Shares Drop 15%: The Impact of Losing the Novo Wegovy Competition.
- Stock Decline: Hims & Hers Health's stock experienced a significant drop on Monday.
- Regulatory Scrutiny: The decline followed the company's decision to abandon plans for a generic version of the Wegovy weight-loss pill due to potential investigations by U.S. regulators.
See More
Stock Futures Edge Up as Investors Await Economic Data and Earnings Reports
- SoFi Stock Surge: SoFi Technologies (SOFI) shares rose 5% after Citizens upgraded the stock from Market Perform to Market Outperform, with analyst Devin Ryan noting that the recent selloff was driven by risk-off sentiment rather than fundamentals, setting a price target of $30, implying about 44% upside.
- Kroger CEO Appointment: Kroger (KR) shares increased by 5% following a Wall Street Journal report that former Walmart U.S. CEO Greg Foran will be appointed as the new CEO, a pivotal move as Kroger faces food price pressures and competition from discount grocers, marking a significant strategic shift for the company.
- Terawulf and Cipher Mining Rise: Terawulf (WULF) and Cipher Mining (CIFR) shares each gained 2% after Morgan Stanley initiated coverage with an Overweight rating, citing attractive valuations linked to Bitcoin-to-data center conversions, with price targets of $37 for Terawulf and $38 for Cipher Mining, both suggesting approximately 159% upside potential.
- Hims & Hers Stock Plunge: Hims & Hers Health (HIMS) shares fell 13% after the company announced it would stop offering a compounded version of Novo Nordisk's Wegovy (semaglutide) pill due to FDA scrutiny and industry pressure, raising broader concerns about compounded GLP-1 offerings.
See More
