Needham downgraded Hims & Hers (HIMS) to Hold from Buy and removed the firm’s prior $65 price target while also removing the stock from the firm’s Conviction List following this morning’s announcement that Novo Nordisk (NVO) is terminating its partnership with the company, citing their “deceptive promotion and selling of illegitimate, knockoff versions” of Wegovy. While Hims has yet to respond, the firm believes the company will likely continue to offer personalized GLP-1s under its interpretation of 503A, which reintroduces the risk of litigation or regulatory action. The firm believes Hims is now at a competitive disadvantage as both Eli Lilly (LLY) and Novo maintain partnerships with its competitors and it believes shares are likely to be range-bound while the legality of Hims’ personalization practices is determined, the analyst tells investors.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HIMS:
- Hims & Hers falls 10% in pre-market trading
- Hims & Hers plunges after Novo Nordisk terminates collaboration
- Novo Nordisk terminates collaboration with Hims & Hers Health
- Hims & Hers core revenue growth has ‘slowed sharply,’ says BofA
- Hims & Hers Stock (HIMS) Collapses 30% After Novo Nordisk Pulls Wegovy Deal on Safety Fears