Telehealth Stock Hims & Hers Spikes After Controversial Weight-Loss Ad
HIMS Performance
Hims & Hers (HIMS) shares surged over 24% on Thursday following its controversial Super Bowl ad promoting affordable GLP-1 weight-loss drugs. Despite criticism regarding the lack of clarity about the specific drugs used, the company's stock has gained over 100% year-to-date and continues to rise, exceeding $57 per share.
Market Factors
* Senate Approval: The Senate's confirmation of Robert F. Kennedy Jr. as the new HHS secretary has fueled optimism, with healthcare expert Jared Holz citing retail investor interest as a primary driver.
* GLP-1 Shortages: Concerns over shortages of GLP-1 drugs from market leaders Eli Lilly (LLY) and Novo Nordisk (NVO) have benefited telehealth players like Hims.
Industry Dynamics
* Compounded Drugs: Compounding pharmacies have played a role in providing GLP-1 products during shortages, albeit with safety concerns.
* FDA Approval: The FDA's recent removal of Lilly's tirzepatide drugs from its shortage list has raised questions about the availability of branded drugs.
* Telehealth Providers: Telehealth platforms such as Hims and Ro have gained market share by offering compounded GLP-1 products.
Key Takeaways
* Hims & Hers has benefited from its controversial advertising and the perceived support of the new HHS secretary.
* GLP-1 shortages have created opportunities for telehealth providers.
* The long-term availability of compounded drugs and the FDA's stance on their safety remain key uncertainties.
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