Hims & Hers Health Inc. experienced a dramatic 25% drop in its stock price following an announcement from the U.S. Food and Drug Administration (FDA). The FDA declared that the active ingredient in popular weight-loss drugs, Ozempic and Wegovy, is no longer in short supply. This announcement has major implications for Hims & Hers, which produces compounded versions of these drugs.
The FDA’s decision to remove the shortage designation means that compounding pharmacies, like Hims & Hers, will face stricter regulations. The FDA has provided a 90-day grace period for these pharmacies to comply with the new rules. This period is intended to avoid unnecessary disruption to patient treatment.
Hims & Hers CEO Andrew Dudum stated that the company will continue to offer personalized treatments as allowed by law and is closely monitoring potential future shortages. Despite this assurance, the market reacted strongly to the news, resulting in a significant decline in the company’s stock value.
The FDA’s announcement also affected other companies in the sector. Shares of Eli Lilly and Novo Nordisk, the manufacturers of the original drugs, saw modest gains. This development highlights the ongoing challenges and regulatory scrutiny faced by companies involved in the production of compounded medications.
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