Hims Investors WEEP As FDA Annihilates Their Get-Slim-Quick Cash Cow—Novo Nordisk Rejoices…

Welp, Hims & Hers just found out what happens when the FDA decides you're no longer necessary. The telehealth darling saw its stock crater 26% on Friday after the FDA officially took semaglutide off its shortage list, meaning the agency is about to start cracking down on all those “totally legal” compounded versions of Ozempic and Wegovy that companies like H&H have been swinging carelessly to get-slim-quick customers. 

(Source: Giphy) 

ICYMI, semaglutide is the active ingredient in Novo Nordisk’s Ozempic and Wegovy—aka, the holy grails of GLP-1 weight loss drugs. Demand for these bad boys has skyrocketed over the past year, to the point where people were literally bribing pharmacists just to get their hands on them. Enter compounding pharmacies, which started whipping up their own versions to fill the gap while supply was tight. 

Hims & Hers jumped on the trend back in May, offering compounded semaglutide at around $200 a month—a steal compared to the $1,000+ price tag of the branded versions. Customers were happy. Hims investors were happy. Novo Nordisk? Not so much. But now that the FDA says the shortage is over, compounding pharmacies are no longer allowed to make semaglutide alternatives, and the agency is planning to start cracking down hard in the next 60 to 90 days. Which means Hims & Hers just lost one of its juiciest revenue streams overnight.

(Source: CNBC) 

Naturally, the market's reaction was… well, absolute panic. Wall Street didn’t take the news lightly—Hims shares got absolutely obliterated, tanking 26% in a single session. Meaning, this friends, is exactly what happens when your entire business model is built on selling something that regulators can kill with one memo. 

What’s more is that it’s not just Hims dealing with the heartache—this could spell trouble for the entire telehealth weight-loss industry. Companies like Sesame, Ivim Health, and every other startup that built a business around cheap compounded GLP-1 drugs are now scrambling to figure out what the hell happens next.

(Source: Fierce Healthcare) 

Now with that said, just because the FDA says the shortage is over doesn’t mean demand is going anywhere. Millions of people are still hooked on GLP-1s for weight loss, and many of them can’t afford $1,000 a month. Which raises the big question: Where are these patients going to go? 

Well, for one, some will just bite the bullet and pay up for the real thing—which is great news for Novo Nordisk and Eli Lilly, but terrible news for anyone without elite-tier insurance. On the other hand, others might turn to sketchy online sources that include some type of malware on their sites LOL–because when you yank away a cheap alternative, people start rolling the dice however which way they can get it. 

(Source: Giphy) 

But, but, but… then again, there’s still the political wildcard in the mix. For instance, the new administration, with RFK Jr. at the helm of HHS, has been laser-focused on slashing drug prices. Could compounded meds make a comeback under new rules? Maybe. But that’s a big, big maybe.

In the end, Hims and Hers just got body slammed by a thing called regulatory risk. If the company can’t find another way to make up for the lost semaglutide revenue, this stock could continue getting gutted for the time being. For now though, big pharma wins, telehealth loses, and consumers are stuck either paying an arm and a leg for weight-loss meds or rolling the dice on god-knows-what from the internet. Welcome to American healthcare. 

So yeah, the rally was fun while it lasted Hims. Meaning, do what you will with this information and place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time… 

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Stocks.News does not hold positions in companies mentioned in the article.