Hims & Hers Halts $49 Semaglutide Pill as Patent Suit Sparks BofA $21 Target
Novo Nordisk has filed a lawsuit accusing Hims & Hers of infringing U.S. Patent 8,129,343 by mass-marketing an unapproved compounded semaglutide pill, prompting Hims to halt the $49/month offering. BofA cut its price target from $26 to $21 and lowered its 2026 GLP-1 revenue forecast by 25% citing FDA action risk.
1. Patent Lawsuit and Pill Halt
In early February, Hims & Hers launched a compounded semaglutide pill for weight loss at an introductory $49/month price, then ceased the offering after Novo Nordisk sued for infringing U.S. Patent 8,129,343 and following FDA statements on non-approved GLP-1 products.
2. Analyst Forecast Revision
BofA Securities reduced its price target on Hims & Hers from $26 to $21 and kept an Underperform rating, applying an 18.5x CY26 EBITDA multiple versus prior 21x, and flagged that unclear FDA API restrictions could hit both oral and injectable GLP-1 sales.
3. Revenue and Earnings Outlook
BofA projects injectable GLP-1 revenue of $825–850 million in fiscal 2025 at about 10% EBITDA margin, while Wall Street anticipates Q4 2025 sales of $619.7 million and EPS of $2.80, with full-year revenue guidance narrowed to $2.335–2.355 billion.
4. Stock Reaction
Shares of Hims & Hers plunged nearly 19% on the combined legal and regulatory developments, extending a year-to-date decline of approximately 46% as investors reassess the durability of the company’s weight-loss drug franchise.