Shares of Hims & Hers Health tumbled more than 23% on Friday after the U.S. Food and Drug Administration (FDA) announced that the shortage of semaglutide injection products has been resolved. Semaglutide is the active ingredient in Novo Nordisk’s popular weight loss drug Wegovy and diabetes treatment Ozempic.
Impact of Semaglutide Shortage Resolution
Hims & Hers has been prescribing compounded semaglutide as an alternative for patients facing supply shortages and insurance challenges. Compounded drugs are custom-made alternatives to brand-name treatments, typically sold at a lower cost. Hims & Hers offers compounded semaglutide for under $200 per month, compared to Ozempic and Wegovy, which cost around $1,000 per month without insurance.
Now that the FDA has declared the semaglutide shortage over, the agency will begin taking action against compounders for regulatory violations within the next 60 to 90 days, depending on the type of facility.
“Now that the FDA has determined the drug shortage for semaglutide has been resolved, we will continue to offer access to personalized treatments as allowed by law to meet patient needs,” Hims & Hers CEO Andrew Dudum posted Friday on X (formerly Twitter).
Hims & Hers’ Growth and Market Challenges
Hims & Hers’ weight loss offerings have been highly popular with investors, driving the stock up more than 200% last year and over 100% this year, despite Friday’s decline. The company anticipates generating over $100 million in revenue from its weight loss program by the end of 2025.
Despite the regulatory challenges, Hims & Hers remains committed to growth. The company announced on Friday that it acquired a U.S.-based peptide facility to “further verticalize the company’s long-term ability to deliver personalized medications.” This acquisition will support advancements in metabolic optimization, recovery science, cognitive performance, and preventative health.
Strategic Expansion Through Acquisitions
In addition to the peptide facility acquisition, Hims & Hers recently acquired Trybe Labs, an at-home lab testing facility based in New Jersey. This acquisition allows Hims & Hers to offer at-home blood draws and more comprehensive pretreatment testing, enhancing its personalized healthcare offerings.
Outlook and Investor Sentiment
Hims & Hers faces regulatory headwinds as the FDA enforces stricter rules on compounded drugs. However, the company’s strategic acquisitions and continued focus on personalized healthcare solutions position it for long-term growth. Investors will be closely watching how the regulatory landscape impacts the company’s revenue streams and product offerings.
