Can Hims & Hers Keep Its GLP-1 Edge After Trump Forces Lilly And Novo To Slash Prices? Wall Street Isn’t Convinced

• Citi calls Trump’s GLP-1 pricing deal “less bad than feared,” while Needham warns it could erode Hims’ cost advantage.
• Trump’s agreements with Eli Lilly and Novo Nordisk cut GLP-1 drug prices and expand Medicare and Medicaid coverage.
• Retail investors on Stocktwits remained ‘extremely bullish’ on Hims, Lilly, and Novo despite the pricing shake-up.

Wall Street analysts weighed in on the outlook for Hims & Hers Health after U.S. President Donald Trump announced agreements with Eli Lilly and Novo Nordisk to cut prices on GLP-1 weight-loss drugs in exchange for a three-year U.S. tariff reprieve.

The move is expected to reshape the obesity-drug market by reducing branded prices and putting pressure on telehealth providers such as Hims & Hers, which have relied on compounded GLP-1 formulations to offer lower-cost alternatives.

Citi Sees Limited Immediate Risk

Citi analysts described the outcome as “less bad than feared” for Hims & Hers. They said that although the pricing overhaul threatens the company’s compounded GLP-1 business, the expected $150-per-month level still leaves Hims positioned as the most affordable option.

The firm added that it expects additional compounded-drug price reductions as oral GLP-1s enter the market next year. Citi maintained its ‘Sell’ rating and $30 price target on Hims & Hers shares.

Needham Warns On Competitive Pressure

Needham analyst Ryan MacDonald reiterated a ‘Hold’ rating, saying the price cuts by Lilly and Novo Nordisk erode Hims’ cost advantage in the weight-loss market. He said the new pricing structure makes it harder for the company to compete solely on affordability and will likely increase its reliance on partnerships with branded GLP-1 manufacturers.

Trump’s Drug-Pricing Plan

At a White House event Thursday, Trump called the agreements “a triumph for American patients that will save lives and improve the health of millions and millions of Americans.”

Under the deal, injectable GLP-1 drugs such as Ozempic and Wegovy will cost $350 through TrumpRx, a direct-to-consumer platform launching in January 2026. Oral versions will start at $150 per month, with both Lilly and Novo planning launches next year.

The plan also extends Medicare and Medicaid coverage to obesity treatments for adults for the first time. Medicare prices for Ozempic, Wegovy, Mounjaro, and Zepbound will be capped at $245, with a $50 monthly co-pay. Other discounted drugs through TrumpRx will include Lilly’s migraine therapy Emgality and Novo’s insulin products NovoLog and Tresiba.

Trump has previously reached similar pricing agreements with major drugmakers including Pfizer, AstraZeneca, and Merck. Earlier this year, he sent letters to 17 pharmaceutical companies, among them Lilly and Novo, urging them to cut U.S. drug prices to levels comparable with those in other developed nations.

Stocktwits Bulls Cheer Hims’ Platform Potential

On Stocktwits, retail sentiment toward Hims & Hers, Novo Nordisk, and Eli Lilly was described as ‘extremely bullish,’ with “extremely high” message volume across all three stocks.

One user said that Hims should push for weight-loss drugs to be covered under Medicaid, arguing that government savings from programs like SNAP could offset costs while improving public health. The user added that better health could even spark “a baby boom” as people became more confident in their appearance.

Another retail investor described Hims as an “asymmetric opportunity,” comparing its early-stage potential to Amazon’s formative years and emphasizing that game-changing platforms often endure steep drawdowns before creating lasting user value.

So far this year, Hims & Hers shares have gained 72%, while Eli Lilly is up 22% and Novo Nordisk is down 45%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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