$HIMS (-0.05%) whose shares have risen over 136% in the past year and which now has a market capitalization of $11.1 billion, plans to launch its digital weight loss program in Canada in 2026, coinciding with the expected availability of generic semaglutide in that market.
The telemedicine company aims to offer lower-cost alternatives to branded GLP-1 drugs through its digital platform, which currently cost over 200 Canadian dollars per month in Canada. The expansion follows the same model as the US supply offering, which has contributed to impressive sales growth of 86% over the last twelve months.
Entering the Canadian market is the next step in Hims and Hers' international expansion strategy, following the recent acquisition of ZAVA. The move enables the company to establish generically available products in new markets while diversifying its sales base.
The company's current US offerings in weight management include personalized semaglutide, generic liraglutide and oral solutions such as metformin, with the semaglutide product being the key driver of the current stock debate.
In other recent news, Hims and Hers Health has announced plans to expand into Canada in 2026, in line with the expected availability of generic semaglutide. This expansion is part of the company's international growth strategy and follows the acquisition of European digital health platform ZAVA. Meanwhile, Truist Securities has reiterated its "Hold" rating on Hims and Hers and maintained a price target of USD 45.00. This is due to price increases for prescription semaglutide drugs. The price adjustments could be a reaction to changing trends in the GLP-1 market. Morgan Stanley has also maintained its Equalweight rating and $40.00 price target on Hims and Hers as legal disputes over GLP-1 prescription drugs continue. The ongoing litigation could take years to resolve with potential consequences for the company. In addition, Truist Securities expressed concerns about Hims and Hers' 2025 revenue guidance and pointed to potential challenges in achieving its annual guidance. These developments underscore the dynamic and multi-faceted environment in which Hims and Hers operates.
Source: www.investing.com