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Investing.com - Morgan Stanley (NYSE:MS) has reiterated an Equalweight rating and $40.00 price target on Hims & Hers Health (NYSE:HIMS) as the company announced plans to expand into Canada in 2026.
The telehealth company intends to offer generic semaglutide in Canada, where Novo Nordisk (NYSE:NVO) recently lost patent protection for the drug. This contrasts with the United States, where semaglutide’s patent protection remains in place until 2031.
Hims & Hers is working with an approved partner to ensure compliance with Canadian laws and regulations as it prepares for this expansion, which represents its latest move into international markets following earlier European initiatives.
The announcement comes amid an escalating dispute between Hims & Hers and Novo Nordisk, with Hims CEO Andrew Dudum emphasizing the generic semaglutide angle in the company’s press release after Novo ended its collaboration with the telehealth provider.
Morgan Stanley notes that potential legal action by Novo Nordisk against Hims & Hers on grounds of unfair trade practices or patent infringement would likely be a lengthy process, though this remains a common question from investors.
In other recent news, Hims and Hers Health announced plans to expand its digital weight loss program into Canada by 2026, aligning with the anticipated availability of generic semaglutide in the market. This move is part of the company’s broader international growth strategy, following its acquisition of Zava, a European digital health platform. The Canadian expansion aims to offer cost-effective alternatives to branded GLP-1 medications, which are currently priced over C$200 per month. Citi has maintained its Sell rating on Hims and Hers, citing the company’s expansion efforts and pricing strategies. Meanwhile, Leerink Partners has kept its Market Perform rating, highlighting the potential for incremental revenue growth from the Canadian market entry. Truist Securities reiterated its Hold rating, noting recent price increases for the company’s compounded semaglutide subscriptions. Additionally, Morgan Stanley maintained its Equalweight rating amid ongoing legal challenges related to compounded GLP-1 medications. The legal proceedings, involving lawsuits from Eli Lilly (NYSE:LLY), are expected to take several years to resolve, impacting both legal and business aspects for Hims and Hers.
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