Hims & Hers Health (NYSE: HIMS) saw its shares climb approximately 9% on Friday, reaching $30.70, following a bullish initiation from JPMorgan. The investment bank assigned an overweight rating and set a price target of $35, signaling confidence in the telehealth company's strategic pivot toward branded GLP-1 weight-loss medications.
Expanding Access to Eli Lilly Drugs
On Thursday, Hims announced that its healthcare providers can now prescribe Eli Lilly's Zepbound vials, Zepbound KwikPen, and Foundayo directly through LillyDirect, a pharmacy service. This allows Hims subscribers to access self-pay pricing for these medications. However, the company emphasized that this arrangement does not imply any partnership or affiliation with Eli Lilly, noting that any licensed provider can write prescriptions for LillyDirect.
JPMorgan's Bullish Outlook
JPMorgan analyst Cory Carpenter highlighted the recent collaboration with Novo Nordisk as a potential inflection point for Hims. He believes it could resolve lingering legal uncertainties and position the company as a comprehensive platform for branded, generic, and compounded treatments. Carpenter noted that the GLP-1 segment remains robust and that new branded partnerships could accelerate revenue growth later this year.
Subscriber Base and GLP-1 Momentum
Hims currently serves approximately 2.5 million subscribers across weight loss, women's health, erectile dysfunction, hair loss, testosterone, and international markets. According to JPMorgan's note, GLP-1 products now account for over 35% of the business, though momentum had previously wavered when drug shortages resolved. The company is working to maintain growth by expanding FDA-approved options.
Competitive Landscape
The weight-loss market is becoming increasingly crowded. This week, Amazon One Medical launched a GLP-1 management program that integrates primary care, telehealth, and pharmacy services, offering same-day delivery in nearly 3,000 cities. Amazon set monthly prices at $149 for oral Wegovy and Foundayo, with some injectables starting at $299 for cash-pay customers.
Beyond Weight Loss
Hims is diversifying its offerings. On Wednesday, the company announced a reliable supply of estrogen patches to address U.S. shortages amid rising demand for hormone replacement therapy. Pricing starts at $134 per month, varying by treatment plan.
Analyst Skepticism and Regulatory Risks
Leerink Partners analyst Michael Cherny questioned whether Hims is merely an expensive storefront for drugs manufactured and priced by other companies. The FDA has reiterated that it does not approve compounded GLP-1 drugs for safety or efficacy before market entry. Hims also flagged potential risks from changes in healthcare, privacy, and consumer protection laws.
Investors now face a key question: can Hims convert access, clinical support, and nutritional guidance into long-term subscriber loyalty, or will it simply funnel patients to competitors like Lilly, Novo, or Amazon? Friday's market response favored JPMorgan's optimism, but the real test lies in retention, margins, and prescription volumes.
