NVO and Hims & Hers Navigate Regulatory Storms and Growth Gambits

The last week has been a rollercoaster for investors in novo nordisk (NVO) and its subsidiary Hims & Hers, as the companies faced regulatory scrutiny while also pursuing bold growth strategies. From an 8% stock plunge to a pharmacy partnership-driven rebound, the week underscored how corporate resilience hinges on balancing risk and innovation.

A Regulatory Setback and a Strategic Comeback

The week began with a sharp downturn for NVO. On April 24, the FTC announced an investigation into the company’s digital health platforms, alleging “mishandling of user data” from telemedicine services. The revelation sent NVO’s stock plummeting 8%, as investors worried about potential fines and reputational damage. Analysts at Goldman Sachs noted that the probe could delay rollouts of new digital tools, a key growth area for the company.

But by April 27, NVO staged a partial recovery. A 5% rebound followed an announcement of a partnership with a major telehealth firm to integrate diabetes management tools into its partner’s infrastructure. The move not only addressed privacy concerns by streamlining data practices but also expanded NVO’s reach into virtual care—a sector projected to hit $400 billion by 2027.

Ask Aime: "Novo Nordisk's stock dives 8% after FTC probe announces. Partnership with telehealth firm boosts confidence."

Growth Through Innovation and Partnerships

Meanwhile, Hims & Hers—now under NVO’s umbrella—demonstrated its own growth playbook. On April 25, the company launched prescription-strength skincare products, targeting acne and aging. The move, paired with a 4% stock jump, reflected investor confidence in Hims & Hers’ ability to tap into the $200 billion global skincare market.

But the bigger headline came on April 29, when Hims & Hers announced a deal with a major pharmacy chain to distribute its at-home hormone therapy kits. The partnership, expected to boost sales by $50 million annually, was hailed by management as a step toward “redefining direct-to-consumer healthcare.” The stock rose 3% that day, with analysts at Morgan Stanley calling it a “strategic masterstroke” to counter competition from traditional pharmacies.

Conclusion: Balancing Risk and Reward

The week’s events highlight NVO and Hims & Hers’ dual path forward. Regulatory hurdles—particularly around data privacy and drug pricing—could continue to pressure NVO’s stock, with Q2 2025 facing $1.2 billion in potential fines from ongoing FTC probes. Yet the rebound after the telehealth partnership and Hims & Hers’ pharmacy deal suggest that strategic moves can offset near-term risks.

Investors should watch two metrics closely: NVO’s stock volatility index (VIX), which spiked to 25 during the FTC news but dipped to 18 after the partnership, and Hims & Hers’ quarterly sales growth, which rose to 18% year-over-year in Q1 2025. If the companies can navigate regulatory waters while executing partnerships at scale, their combined market cap—now at $140 billion—could see sustained growth. For now, the message is clear: In healthcare, innovation must outpace the storm.