Hims & Hers Health Stock Falls as FDA Drops Eli Lilly Weight-Loss Drugs From Shortage List

Core Viewpoints - Hims & Hers Health shares dropped significantly after the FDA removed Eli Lilly's weight-loss drugs from its shortage list, impacting the company's ability to produce compounded versions [1] - The FDA's decision prohibits the production of compounded copycat drugs, which Hims & Hers has benefited from due to limited availability of original obesity medicines [1] - Hims & Hers shares fell 11 4% to $16 77 on Thursday, despite a year-to-date gain of nearly 90% [1] Company Performance - Hims & Hers Health shares experienced a sharp decline, dropping 11 4% to $16 77 in Thursday afternoon trading [1] - The company's shares have gained close to 90% since the start of the year, despite the recent drop [1] - Trading volume for Hims & Hers Health was 20 132 million on October 3, 2024 [2] Regulatory Impact - The FDA's removal of Eli Lilly's weight-loss drugs from its shortage list affects Hims & Hers' ability to produce compounded versions [1] - The FDA allows compounded drugs when original drugs are hard to obtain, but the latest decision restricts this for Eli Lilly's drugs [1] - This regulatory change could negatively impact Hims & Hers, which has benefited from the limited availability of certain obesity medicines [1] Market Context - Eli Lilly's weight-loss drugs, Mounjaro and Zepbound, are no longer on the FDA's shortage list, impacting competitors like Hims & Hers [1] - Earlier in August, Hims & Hers shares also declined after Eli Lilly announced cost-saving measures for its weight-loss drugs [1]