Hims & Hers Stock Plunges on Weight-Loss Drug Withdrawal
Key Takeaways:
* Hims & Hers (HIMS) stock tumbled 27% on Tuesday.
* The telehealth company announced it would cease offering compounded versions of weight-loss drugs.
* Investors are concerned about potential revenue loss from the GLP-1 segment.
* CFO Yemi Okupe emphasized that weight-loss services constitute only a portion of the company's revenue.
* Hims & Hers reported $1.5 billion in 2024 revenue, with $1.2 billion non-GLP-1 related.
Background:
* The industry has faced a shortage of semaglutide injection products.
* Hims & Hers stock surged in 2022 after prescribing compounded semaglutide.
* FDA recently resolved the GLP-1 drug shortage and is targeting compounders.
Market Reaction:
* HIMS stock is down 26.39% as of 12:00:01 PM EST.
* Novo Nordisk (NVO) stock rose 2% on Tuesday.
* Eli Lilly (LLY) shares gained on news of a cost reduction for Zepbound.
Analysis:
* Despite the recent decline, HIMS shares are still up 48% year-to-date.
* The announcement highlights regulatory concerns and the evolving landscape in the weight-loss drug market.
* Investors should monitor further developments and company guidance to assess the potential impact on Hims & Hers' business.