Group 1 - Hims & Hers Health's stock fell by 9.2% following a negative ruling from the U.S. District Court for the Northern District of Texas regarding GLP-1 weight loss drugs [1] - The lawsuit was filed by the Outsourcing Facilities Association (OFA) against the FDA, aiming to prevent the FDA from declaring an end to the shortage of tirzepatide, the active ingredient in Eli Lilly's Zepbound weight loss drug [2][3] - The current shortage allows companies like Hims & Hers to sell their own GLP-1 drugs; if the FDA declares the shortage over, Hims & Hers' ability to sell these drugs will be significantly impacted [3][4] Group 2 - The District Court ruled that OFA cannot prevent the FDA from declaring the shortage of Zepbound over, which poses a risk to Hims & Hers' future GLP-1 sales [4][5] - The ongoing lawsuit does not currently provide an injunction against the FDA, meaning the agency may soon declare an end to all GLP-1 shortages, further threatening Hims & Hers' business [5]
Why Hims & Hers Stock Just Collapsed