Hims & Hers to buy Australian peer Eucalyptus amid GLP-1 regulatory, legal pressure

U.S. telehealth platform and online pharmacy Hims & Hers Health will acquire Australian peer Eucalyptus. The deal comes as the company seeks to reshape investor perceptions after U.S. regulators criticized it over the sale of a copycat of Novo Nordisk’s obesity drug Wegovy and the Danish drugmaker filed a lawsuit.

Hims & Hers has agreed to buy Eucalyptus, which operates a network of online clinics across several countries, the company said.

The transaction is valued at about $1.15 billion. Eucalyptus shareholders will receive approximately $240 million in cash at closing, with additional payments to be made over the following 18 months. The consideration also includes earnout payments tied to financial targets through early 2029. Deferred and additional payments may be made in cash or stock, the press release said.

The acquisition is expected to close in mid-2026, subject to regulatory approvals.

Markets reacted cautiously. On Friday, shares fell 1.2% to $15.63 apiece, and in early trading on Monday they had risen another 0.5% as of this writing.

For Hims & Hers, the acquisition is part of its strategy to build a global consumer healthcare platform. The deal is expected to allow the company to enter new markets, including Australia and Japan, and deepen its presence in the UK, Germany, and Canada.

As of January, Eucalyptus generated annualized revenue of more than $450 million, according to the buyer. The Australian company’s annual recurring revenue showed triple-digit growth in each quarter of 2025, though specific figures were not disclosed. Hims & Hers reported revenue growth of 49% year over year to about $600 million in its most recent quarterly results for third quarter 2025.

Hims & Hers is trying to change the narrative around its business as it faces regulatory and legal pressure, 24/7 Wall St. wrote.

One of the key drivers of the company's growth has been the sale of obesity drugs, including originals and so-called compounded alternatives. In early February, the FDA signaled plans to take action against the latter after the Hims & Hers launched a copy of Novo Nordisk’s Wegovy pill. Novo Nordisk also filed a lawsuit against Hims & Hers. The telehealth company later withdrew the product, and its shares have since fallen sharply.

Against this backdrop, BofA Securities in early February cut its target price on Hims & Hers shares to $21 from $26 apiece and maintained its “underperform” rating. The new target implies about 34% upside from current levels.

The stock has 11 “hold” ratings from Wall Street analysts, alongside six “buy” and two “sell.” The average target price is $31.52 per share, suggesting the stock could roughly double from current levels.