Hims jumps as investors see litigation risk dwindling

Hims & Hers rose more than 8% in early trading Wednesday after a judge dismissed a lawsuit by Eli Lilly challenging a different telehealth company that sells knockoff versions of its GLP-1 drugs.

Hims, the only publicly traded company among its peers, does not sell copycat versions of Lilly’s drugs. But it does sell versions of Novo Nordisk’s competitor weight-loss drugs, and investors have long seen litigation from the Danish pharmaceutical giant as a major risk looming over Hims.

Both Lilly and Novo have sued smaller companies that sell compounded versions of their patented drugs. On Tuesday, a judge dismissed a case Lilly filed against Willow Health, siding with the telehealth company’s argument that its versions of the drugs are in fact “personalized,” which is the same argument Hims has made when Novo has publicly accused it of illegal behavior.

As soon as the ruling hit on Tuesday, prediction markets pegged the likelihood of a suit from Novo against Hims at 44%, down from 50%.