Hims & Hers Shares Plunge 50% on Novo Lawsuit, Hedge Fund Shorts Surge
Hims & Hers shares plunged over 50% after Novo Nordisk filed a patent infringement lawsuit challenging its cut-price obesity pill. In January, hedge funds ramped up short positions to their highest level in at least a year ahead of the legal showdown.
1. Novo Nordisk Files Patent Lawsuit
Novo Nordisk has initiated a patent infringement suit against Hims & Hers, alleging unauthorized use of its obesity medication technology in the telehealth firm’s discounted weight-loss pill.
2. Share Price Plummets Over 50%
Following the lawsuit announcement, Hims & Hers stock collapsed by more than half as investors weighed potential liabilities, market exclusivity challenges and broader regulatory risks.
3. Hedge Funds Increase Short Exposure
Hedge funds boosted their short positions against Hims & Hers to the highest point in at least a year during January, positioning for further downside ahead of the legal battle.