Telehealth Stock Hims & Hers (HIMS) Surges After Controversial Super Bowl Ad
Telehealth company Hims & Hers (HIMS) saw its stock surge over 24% on Thursday, following its contentious Super Bowl ad. The ad highlighted the high cost of GLP-1 weight-loss drugs and promoted affordable alternatives, sparking controversy.
GLP-1 Shortage Concerns Drive Enthusiasm
Amidst concerns about shortages of GLP-1 medications, Hims & Hers has gained market share. Market leaders Eli Lilly (LLY) and Novo Nordisk (NVO) are investing heavily in production to meet demand.
Positive Outlook Under New HHS Secretary
The approval of Robert F. Kennedy Jr. as Secretary of Health and Human Services (HHS) has boosted investor sentiment towards Hims & Hers. Analysts believe the new administration will take a lenient approach towards GLP-1 compounders, further supporting the company's growth.
Safety Concerns and Supply Constraints
Despite concerns about the safety of compounded drugs, demand remains high. The FDA has removed Lilly's tirzepatide drugs from its shortage list, but semaglutide drugs from Novo remain on the list. Telehealth providers like Hims & Hers continue to offer compounded products while production ramps up.
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