Hedge funds bet big against Hims & Hers Health before Wegovy showdown, Hazeltree data shows

Core Viewpoint - Hedge funds have significantly increased their short positions against Hims & Hers Health, coinciding with the company's recent challenges related to its weight-loss pill and legal issues with Novo Nordisk [1]. Group 1: Hedge Fund Activity - Hedge fund bets against Hims & Hers Health reached their highest level in at least a year in January, with nearly 65% of available Hims stock loaned out for short selling, the highest since October 2025 [1]. - Short interest in Hims stock hit a record high on February 12, indicating a strong bearish sentiment among investors [1]. Group 2: Company Developments - Hims & Hers Health withdrew its low-cost weight-loss pill under scrutiny from the U.S. Food and Drug Administration (FDA) and faced lawsuits from Novo Nordisk, resulting in a 33% drop in its share price within a week [1]. - The company unveiled a compounded version of Novo Nordisk's Wegovy weight-loss pill on February 5 but retracted it two days later after the FDA's warning against "illegal copycat drugs" [1]. Group 3: Market Implications - The dissolution of the partnership between Hims and Novo Nordisk has led to increased scrutiny and volatility in Hims' stock, prompting hedge funds to take short positions [1]. - Analysts suggest that without access to a branded weight-loss drug, Hims may struggle to compete in the weight-loss market [1].