Why HIMS Is Down Over 40% in the Last Month

Over the last month, Hims & Hers Health (HIMS) has gone from a market darling to one of the most talked-about sell-offs in the consumer health and tele-health space. A drop of more than 40% in such a short window isn’t random, it’s the result of a sharp collision between regulation, legal pressure, and investor expectations that got ahead of reality.

The GLP-1 Bet That Backfired

HIMS had been riding strong momentum heading into the year, especially after announcing aggressive plans around GLP-1 weight-loss medications, which is the same drug class behind blockbuster treatments like Wegovy and Ozempic.

The pitch was simple and compelling: Make weight-loss treatment cheaper, easier to access, and fully online. But the execution ran straight into a wall. In early 2026, regulators moved to shut down or severely restrict compounded GLP-1 medications, which are non-FDA-approved versions mixed by pharmacies when branded drugs are in short supply. These compounded versions were a key part of HIMS’ weight-loss strategy.

Once regulators stepped in, they said the following:

- Compounded GLP-1s were no longer a viable growth engine

- HIMS was forced to pull or abandon key offerings

- A major future revenue stream suddenly vanished

Novo Nordisk Enters the Picture

Novo Nordisk, the pharmaceutical giant behind Wegovy and Ozempic, filed a lawsuit against HIMS, accusing the company of infringing on patents and improperly marketing weight-loss treatments tied to GLP-1 drugs.

That lawsuit did two things immediately:

1. Increased legal and financial risk

2. Reinforced fears that HIMS had pushed too far, too fast, into Big Pharma’s territory

For investors, this wasn’t just about one lawsuit, it was about precedent. If Novo was willing to go after HIMS publicly and aggressively, others could follow.

Expectations Were Sky-High

Before the sell-off, HIMS was priced like a company that had already won the weight-loss market, not one still navigating regulation, supply chains, and lawsuits.

At its highs, the stock showed:

- Massive GLP-1 adoption

- Smooth regulatory outcomes

- Minimal legal friction

- Long-term dominance in digital health

When growth stocks fall, they don’t drift down they reprice violently. The 40%+ decline wasn’t caused by a single headline. It was caused by a full narrative reset:

- From “HIMS is the future of affordable weight loss”

- To “HIMS may have overstepped regulatory and legal boundaries”

That shift matters more than earnings, guidance, or short-term revenue numbers.

Where That Leaves HIMS Now

The company still has:

- A large direct-to-consumer customer base

- Strong brand recognition

- Profitable non-GLP verticals like hair loss, mental health, and sexual health

But the market is no longer pricing in easy wins.

From here, HIMS has to prove:

- It can grow without relying on gray-area drug strategies

- It can coexist with pharmaceutical giants instead of fighting them

- It can rebuild trust with regulators and investors