Novo Nordisk's Wegovy could soon have a new sales outlet in the U.S.

Telehealth provider Hims & Hers Health Inc. is in active discussions with Novo Nordisk A/S to potentially offer Wegovy, including a prospective oral formulation, on its platform, a development that saw HIMS shares jump 5.7% in after-hours trading. This news coincided with Hims & Hers reporting strong third-quarter results, with revenue up 49% year-over-year to $599 million, exceeding analyst expectations, and subscriber growth of 21% to 2.5 million. The company also issued optimistic Q4 and full-year revenue guidance above consensus, underscoring robust growth momentum and the significant market opportunity presented by potential entry into the GLP-1 medication space.

Analysis

Telehealth provider Hims & Hers Health Inc. (HIMS) announced active discussions with Novo Nordisk A/S (NVO) to potentially offer Wegovy, including a prospective oral formulation awaiting FDA ruling by year-end, on its platform. This news, despite the non-definitive nature of the talks, propelled HIMS shares up 5.7% in after-hours trading, reversing an earlier 2% decline. The potential entry into the high-demand GLP-1 market represents a significant strategic opportunity for HIMS.

Concurrently, Hims & Hers reported robust third-quarter financial results, with revenue growing 49% year-over-year to $599 million, exceeding analyst expectations. Per-share earnings of 6 cents aligned with FactSet consensus, demonstrating solid operational performance. The company also expanded its subscriber base by 21% to 2.5 million, indicating strong customer acquisition.

Management provided optimistic fourth-quarter revenue guidance of $605 million to $625 million and full-year guidance of $2.335 billion to $2.355 billion, both surpassing market expectations. This positive outlook, coupled with the strategic potential of a Wegovy partnership, underscores HIMS's strong growth momentum and expanding market presence in specialized telehealth services.

Key Decisions for Investors

• Investors should consider Hims & Hers' strong Q3 revenue growth and optimistic guidance as indicators of robust fundamental performance and market expansion.
• Monitor the ongoing discussions between Hims & Hers and Novo Nordisk closely, as a definitive agreement for Wegovy distribution could significantly enhance HIMS's market position and revenue streams.
• Evaluate the potential impact of the FDA's decision on oral Wegovy by year-end, as approval would open a new, high-demand product category for telehealth platforms like HIMS.