Core Viewpoint - Hims & Hers (HIMS) stock has experienced a significant decline of over 25% following a patent-infringement lawsuit filed by Novo Nordisk (NVO) targeting its semaglutide products, compounded by a recent FDA crackdown on unapproved GLP-1 compounding [1][5] Financial Performance - Year-to-date, Hims & Hers stock has lost nearly 45%, with its relative strength index (14-day) indicating it is in deeply oversold territory [2] - Bank of America has lowered its price objective for Hims & Hers to $13, suggesting a potential downside of another 32% from current levels [6] Legal and Regulatory Environment - The lawsuit from Novo Nordisk introduces material risks that the market has not fully accounted for, leading to a recommendation for caution in purchasing HIMS stock [5] - Legal defense costs and the possibility of a permanent injunction on all GLP-1 products necessitate a complete reevaluation of the company's valuation [6] Business Model and Strategy - The transition away from high-margin compounded drugs will require significant investment in talent and supply chain verticalization, which may negatively impact earnings revisions in 2026 [7] - The testing by Novo Nordisk allegedly found impurities of up to 86% in certain compounded samples, which could severely damage the HIMS brand and result in a loss of subscribers [8] Market Sentiment - Other Wall Street firms view the ongoing selloff of HIMS shares as potentially overdone, indicating a divergence in market sentiment regarding the stock's future [10]