Hims Stock (HIMS) Rises as FDA Publishes “Green List,” Novo Nordisk Shares Slip

Hims & Hers (HIMS) stock rose 2.6% on Monday after the U.S. Food and Drug Administration (FDA) released a “green list” of overseas suppliers of GLP-1 ingredients that meet its standards. The FDA move gives clarity to compounding pharmacies, which take active ingredients and prepare customized versions of GLP-1 weight-loss drugs. Telehealth companies like Hims use this approach to offer compounded versions of Novo Nordisk’s (NVO) and Eli Lilly’s (LLY) GLP-1 treatments.

The FDA move could be a setback for Novo Nordisk and Eli Lilly, as wider use of compounded GLP-1 drugs may reduce demand for their blockbuster weight-loss treatments such as Wegovy, Ozempic, Mounjaro, and Zepbound. As a result, NVO stock fell 1.7%, but LLY stock gained 1.2%.

Novo and Lilly Defend Their Drugs

Novo Nordisk and Eli Lilly have opposed this practice, saying it hurts their business and violates intellectual property rights. Both drugmakers have filed lawsuits against smaller telehealth companies, pharmacies, and clinics. So far, they have not directly sued Hims.

The FDA’s new list does not settle the fight, but it signals regulatory support for compounding practices under certain conditions. This may lower some risk for Hims, at least in the short term.

Legal Risks Appear to Ease

Markets now see less chance that Novo will bring a lawsuit against Hims. Markets now predict only a 34% chance of Novo suing Hims directly, down sharply from about 70% earlier this month.

That drop shows investors are growing more confident that Hims can continue its weight-loss drug business without a major legal hit.

Is HIMS a Good Stock to Buy? 

Overall, Wall Street is sidelined on Hims & Hers Health stock, with a Hold consensus rating based on seven Holds, two Buys, and two Sell recommendations. The average HIMS stock price target of $49.00 indicates 1.29% downside potential.

See more HIMS analyst ratings