Telehealth Stock Hims & Hers Soars Despite GLP-1 Controversy
HIMS Gains Amidst Super Bowl Ad Fallout
Background:
Telehealth giant Hims & Hers (HIMS) witnessed a surge in stock price, climbing 27.71% after a controversial Super Bowl ad that promoted affordable GLP-1 weight-loss medications. The ad drew fire for criticizing the healthcare system and failing to clarify whether the company offered branded or generic drugs.
Political and Industry Response:
Politicians expressed concerns over the ad's omission of safety warnings, while pharmaceutical companies responded to the controversy. Despite these concerns, HIMS stock continues to rally, up 100% year-over-year.
HHS Stance and Investor Sentiment:
According to Mizuho healthcare expert Jared Holz, the approval of Robert F. Kennedy Jr. as Health and Human Services (HHS) secretary has contributed to HIMS's rise. Investors anticipate a lenient approach towards GLP-1 compounding pharmacies, potentially benefiting Hims.
GLP-1 Shortage and Telehealth Opportunity:
Ongoing GLP-1 shortages have spurred demand for alternative options, with compounding pharmacies playing a role. Despite safety concerns, telehealth providers like Hims and Ro have gained market share. Eli Lilly (LLY) has partnered with Ro to supply vials, easing supply constraints.
Regulatory Developments:
The FDA has lifted the shortage designation for Lilly's tirzepatide drugs, but concerns remain about meeting demand. Novo Nordisk's semaglutide drugs are still on the shortage list, providing an opportunity for telehealth providers to offer compounded products.