Short Seller Who Bet Against Hims & Hers Now Says Its CEO 'Wiped The Floor' With Novo Nordisk

Hunterbrook Media previously held a short position in Hims in 2024.
The co-founder of Hunterbrook Media said that Dudum "mass-compounded for a year" and forced Novo into a settlement before a motion to dismiss.

Hims also named former Eli Lilly communications executive Kathryn Beiser as chief communications officer.

Shares of Hims & Hers Health Inc. (HIMS) are on a tear, gaining nearly 50% since Monday and already on track for their best week ever, after Novo Nordisk A/S (NVO) partnered with the telehealth platform to offer Ozempic and Wegovy at affordable self-pay prices and dropped its patent infringement lawsuit against the company. Now, a hedge fund that had shorted Hims has conceded that its CEO, Andrew Dudum, has "wiped the floor" with Novo in the messy GLP-1 dispute.

Hunterbrook Co-Founder Revisits Hims Short Thesis

Hunterbrook co-founder Sam Koppelman

that Dudum "mass-compounded for a year. When finally sued, he got a desperate $NVO to settle before even a motion to dismiss." He added that there is currently "nothing stopping $HIMS from continuing to sell compounded GLPs."

The comments are notable since Hunterbrook Capital had previously disclosed a short position in Hims. Koppelman said Hunterbrook Media's reporting on Hims had highlighted risks and consequences for the company, but said Dudum

came out ahead. "But seems, as of today, like AndrewDudum completely outplayed Novo and will face ~no consequences for essentially running a drug cartel."

Hunterbrook's Earlier Short Bet

Hunterbrook Capital disclosed a short position in Hims in June 2024, alongside a report questioning the company's GLP-1 strategy. The report said Hims was selling compounded versions of weight-loss drugs through a regulatory loophole that allows copies of approved medicines during shortages, while relying on a single supplier with alleged ties to fraud and bankruptcy.

Hunterbrook also warned the company could face legal risks if the compounded drugs proved unsafe or violated pharmaceutical patents. The report also noted that Hims executives sold more than 1.7 million shares after announcing plans to offer compounded GLP-1 drugs, generating about $26.4 million in proceeds.

Novo Tie-Up Boosts HIMS Stock

Investor sentiment toward Hims shifted after the company renewed a partnership with Novo Nordisk to distribute FDA-approved GLP-1 drugs, including Ozempic and Wegovy, through its platform.

The tie-up marks a sharp reversal after Novo had sued Hims over a copycat Wegovy pill and patent claims tied to Wegovy and Ozempic. Novo later withdrew the lawsuit, removing a major legal overhang, while Hims said it will stop advertising compounded GLP-1 drugs except in limited clinical cases.

The agreement comes amid scrutiny from the U.S. Food and Drug Administration, which has warned telehealth firms about marketing compounded GLP-1 drugs. The announcement triggered a more than 40% surge in Hims shares earlier this week, inflicting about $546 million in mark-to-market losses on short sellers, according to S3 Partners.

Former Eli Lilly Exec Joins Hims

Separately, Hims said it has appointed Kathryn Beiser, a former communications executive at Eli Lilly, as its chief communications officer. Beiser previously held senior communications roles at Discover, Kaiser Permanente and Edelman. Hims said she will oversee internal and external communications as the company expands its healthcare platform.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for HIMS was 'extremely bullish' amid over a 400% surge in message volumes over the past week.

HIMS sentiment and message volume as of March 11 | Source: Stocktwits

One user expects the stock to hit the $50 level by the end of the month.

https://stocktwits.com/TradeOrGoHome/message/647185707

Another user said, "Andrew just killing the bears slowly with daily news! Love it"

https://stocktwits.com/Mogh/message/647184655

HIMS stock has declined 28% year-to-date.