Major Asset Manager Exits $18M Hims & Hers Position Ahead of Novo Nordisk Reconciliation
BLKBRD Asset Management has completely liquidated its stake in Hims & Hers Health ($HIMS), divesting 318,666 shares worth approximately $18.07 million during the fourth quarter of 2025. The full exit represents the unwinding of a position that constituted 5.0% of the fund's assets under management (AUM), marking a significant portfolio shift as the telehealth company faced mounting headwinds from legal and commercial disputes.
The timing of this institutional exit proved consequential, occurring just weeks before a dramatic reversal of fortune for Hims & Hers. On March 10, 2026, the company announced a pivotal new partnership with pharmaceutical giant Novo Nordisk, rekindling commercial ties and resolving years of acrimony. Under the agreement, Hims & Hers will offer weight-loss medications Ozempic and Wegovy through its telehealth platform—a development that immediately sparked investor optimism, with the stock surging 6% in response to both the partnership announcement and the simultaneous withdrawal of litigation between the parties.
The Collapse and Recovery
The trajectory of Hims & Hers stock over the preceding year had been brutally bearish. Before BLKBRD's exit, the company's shares had experienced a devastating 72.46% decline, reflecting widespread investor pessimism following Novo Nordisk's initial partnership termination. That decision had triggered a cascade of negative consequences for the telehealth provider, including the pharmaceutical company's lawsuit against Hims & Hers—a legal action that cast a shadow over the company's growth prospects and threatened its ability to compete in the lucrative weight-loss medication market.
The selloff reflected more than mere corporate dysfunction. It underscored a critical vulnerability in Hims & Hers' business model: dependence on partnerships with major pharmaceutical manufacturers to distribute brand-name medications. When Novo Nordisk severed ties, it removed the company's access to one of the most commercially important drug classes of the moment—GLP-1 receptor agonists used for weight loss and diabetes management. This exclusion left Hims & Hers at a substantial competitive disadvantage relative to other telehealth platforms that maintained such relationships.
BLKBRD Asset Management's decision to exit the full position during this nadir illustrates a fundamental challenge for institutional investors: timing market recoveries is notoriously difficult. The fund eliminated its exposure when the stock was trading at depressed valuations, evidently unable to anticipate or willing to avoid the risk of further deterioration. This represents a common pattern—large institutional shareholders sometimes cut losses rather than wait for turnarounds, particularly when conviction in management's strategic direction has eroded.
Market Context and Sector Implications
The Hims & Hers situation reflects broader dynamics shaping the telehealth and digital health sectors. Telehealth platforms have faced persistent challenges in establishing sustainable competitive moats, particularly when dependent on pharmaceutical partnerships outside their direct control. The sector has proven volatile, with investors oscillating between enthusiasm for the convenience and cost advantages of remote healthcare delivery and concerns about unit economics, regulatory headwinds, and the consolidation of power among major pharmaceutical manufacturers.
GLP-1 receptor agonists—primarily Ozempic and Wegovy—have emerged as one of healthcare's most competitive and lucrative markets. Beyond weight loss, these medications have demonstrated benefits in diabetes management and potentially cardiovascular health, creating enormous addressable markets. The rush by telehealth platforms to offer these drugs has become strategically essential, making partnership terms with manufacturers like Novo Nordisk critical bargaining chips.
The reinstatement of Hims & Hers' access to Novo Nordisk products represents a significant validation of the company's platform and customer base. After the partnership termination, industry observers questioned whether Novo Nordisk would conclude that managing weight-loss drug distribution through its own channels or preferred partners served the company better. The reversal suggests Novo Nordisk determined that Hims & Hers' customer reach, operational efficiency, and established telehealth infrastructure provided sufficient value to justify renewed collaboration—and, critically, settlement of outstanding litigation.
Investor Implications and Outlook
For shareholders remaining in Hims & Hers after the partnership announcement, the company's near-term outlook has improved substantially. Access to Ozempic and Wegovy restores a critical revenue stream and allows the platform to compete more directly with other telehealth competitors. The 6% stock appreciation on the partnership news suggests the market was pricing in meaningful probability of a negative outcome—undervaluing the potential for reconciliation.
The BLKBRD exit raises questions about whether other institutional shareholders similarly underestimated the durability of Hims & Hers' customer relationships or Novo Nordisk's strategic calculations. Asset managers that maintained positions through the downturn may now benefit from renewed investor interest in a company with restored pharmaceutical partnership access.
However, investors should recognize the fragility of Hims & Hers' competitive position. The reconciliation with Novo Nordisk depends on maintaining satisfactory partnership terms and performance metrics. Future disputes or shifts in Novo Nordisk's distribution strategy remain possible risks. Additionally, the telehealth landscape continues evolving, with established pharmaceutical companies increasingly building direct-to-consumer capabilities and pharmacy retailers expanding digital health offerings.
The partnership reinstatement and litigation settlement represent meaningful positive developments for Hims & Hers, validating its platform's importance to Novo Nordisk and restoring access to one of healthcare's fastest-growing medication categories. For institutional investors like BLKBRD, the exit represents a realized loss on positions acquired at presumably higher prices—a reminder that even deep fundamental conviction sometimes succumbs to near-term uncertainty and risk management imperatives.