Title: Hims' Novo Nordisk Reunion: Deja Vu or a Data-Driven Do-Over?
Hims & Hers is back at the Novo Nordisk table, hoping for a different outcome this time. The telehealth company, fresh off third-quarter earnings, announced it's again in discussions with Novo Nordisk to distribute the drugmaker's branded weight-loss drugs. The last attempt ended in a messy breakup, with Novo accusing Hims of “illegal mass compounding and deceptive marketing." So, what’s changed? Or, more accurately, what numbers suggest a different outcome is even plausible?
Parsing the Q3 Numbers: More Than Meets the Eye
On the surface, Hims' Q3 numbers paint a picture of a company navigating choppy waters. Earnings per share missed estimates—$0.06 versus an expected $0.09. But revenue? That's where things get interesting. The company reported $598.9 million in sales, a healthy beat over the $580.2 million expected by Wall Street. That's a discrepancy of almost $19 million. Is this enough to paper over the cracks? Probably not.
The narrowed full-year revenue guidance to $2.35 billion (from a previous range of $2.3 billion to $2.4 billion) suggests a cautious outlook. It's like a poker player tightening their range after taking a hit. They're still in the game, but they're playing more defensively.
Hims is trying to diversify, moving beyond its core sexual health business, which is clearly slowing down. They've introduced testosterone treatments, menopause regimens, and even GLP-1 "micro-dosing" options. It's a shotgun approach—trying to hit as many potential revenue streams as possible. But are they spreading themselves too thin?
And this is the part of the report that I find genuinely puzzling. Why go back to Novo Nordisk after such a public and acrimonious split? It's not like there's a shortage of potential partners in the pharmaceutical world.
International Expansion: A Calculated Risk?
Hims is also pushing into international markets, eyeing Brazil, the U.K., Germany, and Australia. The acquisition of Zava, a European peer, for $265.7 million (a substantial sum for a company still trying to prove its profitability) signals a serious commitment to this strategy. They're also planning a 2026 launch in Canada with generic versions of Novo's weight-loss shot.
But international expansion is a high-stakes game. Different regulatory environments, cultural nuances, and competitive landscapes all add layers of complexity. It's not as simple as translating the website and shipping products overseas. The acquisition cost was substantial, reported at $265.7 million, and that figure needs to translate to real revenue growth, not just a vanity metric.
The company's planned launch of "comprehensive lab testing capabilities" is another interesting move. This will support their upcoming "longevity" specialty and injectable testosterone offerings, both slated for next year. It's an attempt to move up the value chain, offering more comprehensive and personalized healthcare solutions. Will customers bite?
The prior partnership ended because Novo accused Hims of “illegal mass compounding and deceptive marketing.” Has Hims addressed these issues? The press release doesn’t say. News outlets like Sherwood.news are reporting that Hims rises on revenue beat, discloses it’s again in partnership talks with Novo.
Still Too Early to Call This a Comeback
Hims' attempt to reconcile with Novo Nordisk feels like a high-risk, high-reward gamble. The Q3 numbers are a mixed bag, the diversification strategy is still unproven, and the international expansion is fraught with challenges. Unless Hims can demonstrably prove they've cleaned up their act and addressed Novo's previous concerns, this reunion could end up being even messier than the first time around.
