Crispr Therapeutics shares tumble after significant earnings miss
Investing.com - Morgan Stanley (NYSE:MS) has reiterated its Equalweight rating and $40.00 price target on Hims and Hers (NYSE:HIMS), a telehealth company that has seen remarkable growth with revenue surging 86% year-over-year, as legal challenges surrounding compounded GLP-1 medications continue to unfold. According to InvestingPro data, analyst targets for HIMS range from $28 to $85, reflecting mixed sentiment about the company’s prospects.
The firm consulted with two legal experts regarding Eli Lilly (NYSE:LLY)’s lawsuits against compounding pharmacies, with both specialists suggesting the cases could take 2-3 years to resolve. The experts believe courts would likely refuse to dismiss the cases, allowing them to proceed through the legal system. Despite these challenges, HIMS maintains strong financial health with a healthy current ratio of 1.59 and operates with moderate debt levels.
The analysis comes after Novo Nordisk (NYSE:NVO) recently ended its collaboration with Hims and Hers, increasing focus on both legal and business implications for the telehealth company. One expert has been conservatively advising compounding pharmacy clients to consider leaving mass-scale GLP-1 compounding altogether, while the other believes there may be arguments supporting customized compounding for different patient groups.
Both experts noted that without preliminary injunctions, compounding pharmacies can continue operations throughout the legal proceedings. The FDA recently finalized its no-compounding list on June 26, which did not include GLP-1 medications—a fact that compounders might leverage to counter claims by pharmaceutical manufacturers.
The legal specialists differed in their assessment of risk, with one taking a more conservative view on the legality of 503A compounding than the other, though both acknowledged the fact-specific nature of each case and the time required for discovery and evidentiary proceedings. For deeper insights into HIMS’s financial health and growth prospects, including 15+ additional ProTips and comprehensive valuation analysis, visit InvestingPro, where you’ll find detailed research reports covering 1,400+ top stocks.
In other recent news, Hims & Hers Health has faced a series of developments impacting its operations and market perception. Truist Securities has maintained a Hold rating on Hims and Hers, projecting second-quarter 2025 revenues to be between $543-$550 million. This range is within the company’s guidance but potentially below the consensus estimate. Concurrently, Needham downgraded Hims and Hers from Buy to Hold following Novo Nordisk’s termination of their partnership, citing concerns over Hims’ promotion practices.
Morgan Stanley also reiterated an Equalweight rating, highlighting slowing growth in key metrics like app downloads, which have seen a decline in recent months. In a strategic move, Hims & Hers appointed Dheerja Kaur as its first Chief Product Officer to enhance its product offerings and drive global expansion. Meanwhile, LifeMD continues its partnership with Novo Nordisk to offer access to the weight-loss drug Wegovy, contrasting with Hims’ recent partnership challenges. These developments reflect a dynamic period for Hims & Hers as it navigates partnerships, revenue projections, and leadership changes.
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