Hims & Hers Stock Crashes 62% After Wegovy Copycat Lawsuit Fallout
Shares in Hims & Hers Health have plummeted over the past year, falling from a peak of $73 in February 2025 to below $30 by early 2026. The steep decline follows the company's withdrawal of a controversial Wegovy copycat drug after a patent lawsuit from Novo Nordisk, along with mounting investor scepticism and heavy short-selling activity in the stock market.
The troubles began when Novo Nordisk filed a lawsuit against Hims & Hers over its copycat version of the weight-loss drug Wegovy. Shortly after the legal action was announced, the company's google stock dropped by roughly 16% in a single day. Regulatory pressure soon forced Hims & Hers to pull the product from the market entirely.
Since then, the google stock has continued its downward spiral. By February 12, 2026, shares hit a low of $15.64, recovering slightly to trade between $26 and $30 in early February. Over the past year, the google stock has lost over 62% of its value, with sharp declines of 57.5% in three months and 41.93% in just the last month. Analysts have grown increasingly bearish, with firms like TD Cowen and Bank of America slashing price targets to $37 and $29, respectively.
Short sellers have piled in, driving the company's short interest up by 46% over the past year to 77.5 million shares—equivalent to 37% of its float. Data from S3 Partners shows this figure reached a new 52-week high as of February 11. Adding to the turbulence, options expirations on January 16, 2026, triggered extreme volatility, while investors now brace for the company's Q4 2025 earnings report on February 23. Analysts project a potential one-day stock swing of +/-14% following the results.
Despite these challenges, Hims & Hers has reported strong revenue growth, nearing $2 billion over the last 12 months. Yet concerns over profitability and the sustainability of its GLP-1 drug segment persist.
The company now faces a critical period as it prepares to release its latest earnings. With shares under pressure, high short interest, and lingering doubts about its drug pipeline, the market will be watching closely. The outcome could determine whether the google stock stabilises or faces further declines in the months ahead.
