Hims(HIMS) CNBC·2025-02-21 17:56Core Viewpoint - Shares of Hims & Hers Health fell over 23% following the FDA's announcement that the shortage of semaglutide injection products has been resolved [1] Group 1: Market Context - Semaglutide is the active ingredient in Novo Nordisk's popular weight loss drug Wegovy and diabetes treatment Ozempic, both of which are part of the GLP-1 drug class, experiencing significant demand growth in recent years [2] - Hims & Hers has been prescribing compounded semaglutide as an alternative due to supply issues and insurance challenges faced by patients [2][3] Group 2: Compounded Drugs - Compounded drugs are custom-made alternatives to brand-name drugs, produced to meet specific patient needs during shortages, and the FDA does not review their safety and efficacy [3] - Hims & Hers began offering compounded semaglutide in May, selling it for under 1,000 without insurance [4] Group 3: Regulatory Environment - The FDA plans to take action against compounders for violations within 60 to 90 days to prevent disruption in patient treatment [4] - Hims & Hers CEO stated the company will continue to provide personalized treatments as permitted by law and is monitoring potential future shortages [4] Group 4: Financial Performance - Hims & Hers' weight loss offerings have significantly attracted investors, with shares rising over 200% last year and more than 100% this year despite recent declines [4] - The company anticipates its weight loss program will generate over $100 million in revenue by the end of 2025 [5] Group 5: Strategic Acquisitions - Hims & Hers announced the acquisition of a U.S.-based peptide facility to enhance its ability to deliver personalized medications and explore advancements in various health areas [6] - The company also acquired Trybe Labs, an at-home lab testing facility, enabling it to perform at-home blood draws and comprehensive pretreatment testing [7]