Shares of Hims & Hers Health (NYSE:HIMS) are falling on Friday. The company's stock lost 23.2% as of 1 p.m. ET and lost as much as 26.1% earlier in the day. The move comes as the S&P 500 lost 1% and the Nasdaq Composite lost 1.3%.
Hims & Hers, one of the most popular telehealth services in the world, is in danger of losing one of its central revenue sources.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Ozempic is no longer in short supply
The U.S. Food and Drug Administration (FDA) removed semaglutide injection products like the blockbuster drugs Ozempic and Wegovy from its shortage list. The FDA will now begin taking action against "compounders" -- companies that were able to make generic versions of semaglutide drugs due to their shortage -- in the next 60 to 90 days. Only brand-name semaglutide products will be available moving forward unless another shortage occurs.
A big hit to Hims & Hers
Though it doesn't compound them itself, Hims & Hers saw its sales explode over the last year driven in part by its ability to sell compounded semaglutide products through its platform. The FDA's decision means a marked reduction in revenue for the company. The news also comes just as the company announced it had purchased a peptide facility that would have allowed it to compound these medications itself.
However, despite the bad news, Hims & Hers Health's CEO remains hopeful that there are many other personalized weight loss products it can provide through this facility that will continue to drive sales.
Should you invest $1,000 in Hims & Hers Health right now?
Before you buy stock in Hims & Hers Health, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hims & Hers Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $858,668!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 21, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
/AI%20(artificial%20intelligence)/AI%20engineer%20working%20on%20laptop%20by%20ART%20STOCK%20CREATIVE%20via%20Shutterstock.jpg)
/Nike%2C%20Inc_%20swish%20by-%20Tartezy%20via%20Shutterstock.jpg)
