Hims & Hers Health stock has declined 70% over the past year due to slowing GLP-1 drug sales after FDA ended shortage declarations and competitors cut prices. Q4 2025 earnings beat on profit but missed on sales, with quarterly growth halving to 28% from full-year 59%. However, management emphasizes that the majority of revenue comes from non-GLP-1 offerings and remains confident in achieving $2.8 billion in 2026 sales.

Hims & Hers Health (HIMS) has plummeted 75.50% from its May 2025 all-time high of $64.65, largely due to a February 2026 lawsuit from Novo Nordisk alleging unlawful marketing of unapproved semaglutide versions. Despite the sharp decline, analysts remain bullish with an average 12-month price target of $39.32 suggesting nearly 150% upside. The company is expected to report record quarterly revenue of $619 million on February 23, and its oversold RSI reading of 16.87 suggests a potential near-term bullish reversal. Beyond GLP-1 headwinds, Hims' other business segments in telehealth, hair thinning, and sexual health supplements show strong growth prospects.

Major M&A activity continues across multiple sectors: Starboard Value pushes TripAdvisor toward a sale, Hims & Hers acquires Eucalyptus for $1.15B to expand internationally, Danaher buys Masimo for $9.9B, Mister Car Wash goes private via Leonard Green for $3.1B, and Devon Energy completes a $21.4B merger with Coterra Energy. Meanwhile, Saks Global struggles with vendor shipments during bankruptcy, and Warner Bros. Discovery rejects Paramount's hostile bid.

Hims & Hers Health announced a definitive agreement to acquire Eucalyptus, a digital health leader operating in Australia, U.K., and Germany, for up to $1.15 billion. The acquisition is expected to close mid-2026 and will fuel the company's global expansion into markets like Japan and Canada. Despite the positive announcement, technical analysis shows the stock remains in a bearish trend with oversold conditions.

The article identifies the top 10 most heavily shorted stocks as of February 13, 2026, led by Choice Hotels International (57.32% short interest), Lucid Group (51.78%), and Avis Budget Group (48.72%). It explains that stocks become heavily shorted when investors believe they are overvalued and face significant risks, while retail traders view high short interest as potential short squeeze opportunities. The article cautions that while monitoring short interest can help identify potential squeezes, timing such trades is extremely challenging and investors should conduct thorough due diligence given the underlying business risks.

Novo Nordisk plans to launch Wegovy in vial format in the U.S. to compete with Eli Lilly's Zepbound and reach more obesity patients. The move comes as Novo faces headwinds including lower pricing, patent expiries, and competition. The company expects adjusted sales growth of -5% to -13% for 2026, while Eli Lilly projects strong growth with $80-83 billion in sales.

Hims & Hers Health stock plummeted 16% on February 9, 2026, following a lawsuit from Novo Nordisk and FDA regulatory crackdown on compounded GLP-1 drugs. The company had announced it would withdraw its copycat obesity drug amid regulatory pressure. The stock has fallen 26.89% over five days as investors weigh legal and regulatory risks.

Hims & Hers stock plummeted 16% after the FDA announced plans to restrict GLP-1 ingredients in non-FDA-approved compounded drugs, forcing the company to abandon its copycat Wegovy pill launch. The decision came after Novo Nordisk sued for patent infringement. With GLP-1 drugs driving 74% of the company's revenue growth, regulatory and legal challenges pose significant risks to future profitability.

Eli Lilly and Novo Nordisk, both major GLP-1 drug market competitors, are moving in opposite directions. Eli Lilly projects 27% revenue growth driven by blockbuster drugs Mounjaro and Zepbound, trading at a 46x P/E multiple. Novo Nordisk faces a projected 5-13% sales decline due to competition from compounded drugs but trades at an attractive 13x P/E. The author recommends Novo Nordisk as the better long-term investment despite current headwinds, citing its lower valuation and potential from its GLP-1 weight loss pill rollout.

Hims & Hers Health stock crashed to 52-week lows, falling 20.10% on Monday amid multiple crises: the FDA and DOJ cracked down on its compounded oral semaglutide pill launch, forcing the company to halt sales within 48 hours, and Novo Nordisk filed a major patent infringement lawsuit targeting Hims' entire GLP-1 business, potentially worth $800 million in projected 2025 revenue. The legal uncertainty has triggered massive selling pressure with trading volume exceeding four times the average.

Novo Nordisk filed a lawsuit against Hims & Hers for patent infringement over compounded semaglutide products, claiming they are unapproved knock-offs of Wegovy and Ozempic that pose health risks. Novo's testing found compounded injectable semaglutide contained impurities up to 86%, with oral versions reaching 75%, potentially causing dangerous immune responses and overdoses. NVO stock rose 6.84% while HIMS stock fell 26.93% following the announcement.

Novo Nordisk (NVO) stock rose 8.32% on Friday following FDA Commissioner Marty Makary's statement warning against illegal copycat drugs. This came after the company faced pressure from Hims & Hers' announcement of compounded semaglutide pills at $49/month, which Novo Nordisk claims is an illegal, unapproved knockoff. The stock had fallen for two consecutive days due to lower-than-expected 2026 guidance projecting -5% to -13% adjusted sales growth.