Hims & Hers Health, Inc. Class A Common Stock (HIMS)
32.87
0.00 (0.00%)
Hims & Hers Health Inc is a telehealth company that focuses on providing accessible and affordable healthcare solutions for a variety of needs, particularly focusing on personal wellness and self-care
The company offers a range of products and services, including prescription medications for conditions such as hair loss, erectile dysfunction, and skincare, as well as wellness supplements and telemedicine consultations. By leveraging technology, Hims & Hers aims to simplify the healthcare experience, making it more convenient for consumers to receive treatment and advice from licensed professionals without the barriers typically associated with traditional healthcare delivery.
Shares of telehealth company Hims & Hers Health (NYSE:HIMS) fell 8% in the afternoon session after the U.S. Food and Drug Administration raised concerns about unapproved GLP-1 drugs used for weight loss, including versions (compounded) prescribed by Hims & Hers. There had been growing market demand for weight loss drugs in recent months, and they've evolved to be a significant driver of sales growth for manufacturers and distributors. The FDA's concerns could indicate tighter regulatory scrutiny, which restricts the ability of suppliers like Hims & Hers to get the affected versions to consumers.
Healthcare companies are pushing the status quo by innovating in areas like drug development and digital health. Despite the rosy long-term prospects, short-term headwinds such as COVID inventory destocking have harmed the industry’s returns -
over the past six months, healthcare stocks have collectively shed 9.4%. This performance was disappointing since the S&P 500 held its ground.
Viking Therapeutic may have a GLP-1 blockbuster on their hands with VK2735 as it produces weight loss at 5X the speed of Novo Nordisk's Wegovy GLP-1 drug.
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
Novo Nordisk slashed prices on its GLP-1 obesity drugs as it launches NovoCare to gain compounded GLP-1 users as the compounding labs face deadlines to cease.
Hims & Hers Health stock drops over 20% after the FDA removes semaglutide from the shortage list. Novo Nordisk launches a direct delivery service for Wegovy.
