Hedge funds significantly increased bearish bets against Hims & Hers Health in January, just weeks before the online healthcare provider became embroiled in a legal and regulatory dispute with Novo Nordisk, according to a report by Reuters citing data from Hazeltree.
Short interest in Hims reached its highest level in at least a year, with nearly 65% of the company’s available shares on loan for short selling during January. The figure marked the most elevated level since October 2025, based on Hazeltree data tracking stock lending activity across more than 600 asset managers globally.
The build-up in short positioning came shortly before Hims withdrew a low-cost compounded version of Novo Nordisk’s weight-loss drug Wegovy, following scrutiny from the US Food and Drug Administration. Novo Nordisk subsequently filed a patent infringement lawsuit, developments that together erased roughly a third of Hims’ market value in less than a week.
Hims’ shares are now down more than 50% year-to-date, while short interest reached a record high on 12 February, according to market data. The stock has been highly volatile, a dynamic that has historically attracted hedge fund trading activity.
Analysts point to the breakdown of Hims’ prior partnership with Novo Nordisk as a key catalyst behind the growing short thesis. Without access to a branded weight-loss drug, the company faces structural challenges in competing effectively in the fast-growing obesity treatment market.
Hims has publicly pushed back against Novo Nordisk’s legal action, framing the lawsuit as an attempt by a large pharmaceutical group to restrict access to personalised compounded treatments. The company declined to comment directly on hedge fund short positioning.
