Investing.com - Hims & Hers Health Inc. shares are heading toward their strongest weekly performance on record following a new partnership with Novo Nordisk A/S that has reignited investor confidence in the company's weight-loss drug business.

The San Francisco-based telehealth company's stock jumped at the open on Friday before settling to gains of about 2% as of shortly after 10AM. The advance builds on a 51% surge for the week through Thursday's close. Shares have climbed in three of the past four trading sessions, reaching a one-month high.

Earlier this week, Hims said it would partner with Novo to sell Ozempic and Wegovy on its platform, resolving a dispute between the two companies. Novo agreed to withdraw a lawsuit it filed against Hims last month. Under the agreement, Hims will stop advertising compounded versions of Novo's drugs but will continue to sell copies of Ozempic and Wegovy when a doctor determines a patient requires them.

Novo terminated its original partnership with Hims in June, accusing the company of using deceptive marketing. Novo executives said at the time that Hims had not sufficiently scaled back its practice of mass marketing compounded versions of the weight-loss drugs. Investors sold Hims stock as concerns mounted about the company's weight-loss business and potential legal action from the Danish pharmaceutical company.

The stock decline accelerated early this year when Novo filed a lawsuit against Hims for introducing a copycat version of the Wegovy pill. Hims removed the product from the market following regulatory threats.