After just one month, Novo Nordisk (NVO) announced that it is terminating its partnership with Hims & Hers (HIMS) offering direct access to Wegovy through NovoCare, Citi tells investors in a research note. With the cancellation, the firm thinks Hims & Hers’ legal risk “increases substantially.” Citi could see Novo take a more aggressive stance similar to Eli Lilly (LLY). However, from a financial perspective, the firm does not think this will have a significant impact on Hims & Hers’ fiscal 2025 results. It estimates the vast majority of Hims & Hers’ $725M weight loss revenue will still come from compounded semaglutide. The analyst keeps a Sell rating on the shares with a $30 price target. The stock in midday trading is down 32%, or $20.57, to $43.66.
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