Needham called the tie-up a “groundbreaking partnership” and said it alleviates investor concerns around Hims’ ability to hit its 2025 weight loss revenue guidance.

Shares of Hims & Hers Health, Inc. (HIMS) marked their best session in nearly three months on Tuesday, surging over 23% after the telehealth firm expanded its offerings to include a pharmaceutical giant’s blockbuster weight-loss drug.

As part of a long-term collaboration, Hims said it would supply Novo Nordisk’s blockbuster Wegovy auto-injector pens on its platform for a bundled price of $599 per month.

Clinical trials have shown that Wegovy, the branded version of semaglutide, can help individuals lose more than 10% of their body weight after one year of treatment.

On Stocktwits, the news caused 24-hour message volume about Hims to soar by over 486% on Tuesday, with sentiment turning ‘extremely bullish.’

Wall Street analysts also boosted investor hopes.

According to The Fly, BofA Securities raised its price target on HIMS to $26 from $22, saying the partnership can be “mutually beneficial.” 

The research firm noted that the alliance further validates Hims’ direct-to-consumer model as a platform for broader drug collaborations and gives the company a clear incentive to transition patients from its compounded version of semaglutide to Novo Nordisk’s Wegovy.

However, BofA retained its ‘Underperform’ rating on Hims on weakening consumer trends and growth rates exiting March.

Needham called the tie-up a “groundbreaking partnership” and said it alleviates investor concerns around Hims’ ability to hit its $725-million weight loss revenue guidance for fiscal 2025. The firm retained its ‘Buy’ rating on HIMS, with a $61 price target.

A Stocktwits poll with over 3,500 votes as of early Thursday showed 58% of retail investors believe HIMS stock will climb above $50 following its Novo Nordisk partnership — a level last seen in late February. 

However, 18% think it will remain “stuck in the $40s,” while the rest expect it to fall back to $30 or lower.

“Many new shorts jumping into the volatility before realizing earnings are next week. We should see them cover tomorrow,” said one bullish user.

“$100 stock on sale right now 70% off,” said another.

The weight-loss drug wars are playing out on two fronts. Pharmaceutical giants like Novo Nordisk and Eli Lilly are racing to dominate the market with improved offerings.

Meanwhile, telehealth players such as Hims & Hers and Ro Health are competing by partnering with drugmakers instead of making their own compounded versions — which can be done only if the U.S. FDA declares a shortage of the active ingredient.

HIMS stock is up over 34% this year but also has an extremely high short interest of 27.3%, according to the latest data on Koyfin.

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