Novo takes ‘direct shot’ at Hims & Hers with NovoCare , says Citi

Citi analyst Daniel Grosslight keeps a Sell rating on Hims & Hers (HIMS) with a $27 price target after Novo Nordisk (NVO) announced yesterday the launch of NovoCare Pharmacy, a direc-to-consumer, cash-pay only offering that allows uninsured patients to purchase Wegovy for $499 per month. This is similar to Eli Lilly’s (LLY) LillyDirect offering that provides access to Tirzepatide vials to cash pay customers for $350 or $499 per month, the analyst tells investors in a research note. Citi views Novo’s announcement as “taking a direct shot” at Hims & Hers and other compounding pharmacies offering compounded semaglutide. The firm expects the shares to trade down on the news. The stock closed Wednesday up 1% to $40.89.