So, Hims and Novo Nordisk are talking again? After that whole "deceptive marketing" fiasco with the copycat Wegovy? Give me a freakin' break. This reeks of desperation on both sides.
Round Two: Weight-Loss Roulette
Hims is hurting, let's be real. They jumped headfirst into the weight-loss drug market, riding the wave of shortages and offering "alternatives" to Novo and Lilly. But now the regulators are cracking down, and their golden goose is looking a little plucked. Six cents per share earnings when analysts expected nine? Ouch. Subscriber growth is up, sure, but so what? It's the revenue that matters, and their guidance for the fourth quarter? Underwhelming, to say the least. And lowering their sales guidance for the year? That's not a good look. According to Hims & Hers Stock Pops After Q3 Earnings: Here's Why - Benzinga, Hims & Hers stock popped after Q3 earnings.
Novo, on the other hand, they're supposedly the big dog here. But even big dogs get lonely. Maybe they realized that fighting Hims was like trying to swat a fly with a sledgehammer. Easier to just bring 'em inside and make 'em sell your stuff. Or maybe they're just trying to cover all their bases in a hyper-competitive market. Who knows what goes on in those boardrooms?
Leerink Partners analyst Michael Cherny calls it "an enhanced revenue runway" for Hims. Enhanced revenue runway? That's analyst-speak for "they're probably screwed without this deal." And what's this about "removing some of the general market pressures"? You mean the pressure of, ya know, following the rules and not selling knock-off drugs?
Personalized Care? More Like Personalized Profiteering
Andrew Dudum, the co-founder and CEO of Hims & Hers, says their vision of providing personalized care is "more real than ever." Oh, please. Let's call it what it is: personalized profiteering. They're selling dreams of easy weight loss, hair growth, and a functioning libido, all conveniently delivered to your door. It's the 21st-century snake oil, just repackaged for the digital age. I’m sure they will find away to keep the personalized care, but at what cost?
And I can’t help but wonder if this is all just a distraction. A shiny object to take our eyes off the fact that they missed earnings estimates and had to dial back their sales projections. Shares jumped 8% in after-hours trading? People are so easily fooled.
Hims started out offering treatments for hair loss and erectile dysfunction. Now they are more dependent on selling weight-loss drugs. It's like they're chasing whatever trend is hot at the moment. Where's the long-term vision? Where's the actual innovation? I mean, are they even a real healthcare company at this point, or just a marketing machine disguised as one? Then again, maybe I'm the crazy one here. Maybe I'm just too cynical.
Deja Vu All Over Again
The fact that Hims and Novo had a previous partnership that ended badly should be a huge red flag. Novo accused Hims of "deceptive marketing." Deceptive marketing! That's not exactly a minor disagreement. So, what's changed? Did Hims suddenly become ethical? Did Novo suddenly develop a sense of humor? Offcourse not.
Details on the specifics of the deal are scarce, but Novo Nordisk confirmed they are in "preliminary" talks with Hims. Preliminary talks. That's corporate-speak for "we're just kicking the tires, don't get your hopes up." According to Hims Shares Rise on Talks to Offer Novo’s New Obesity Pill - Yahoo Finance, Hims shares rose on talks to offer Novo’s new obesity pill.
