Why Hims & Hers Health Stock Just Popped

Core Viewpoint - Hims & Hers Health received a positive update from the FDA, allowing the company to continue selling semaglutide-based products, which is crucial for its revenue stream, despite the impending loss of its tirzepatide business [1][2][3][4][5]. Group 1: FDA Clarification - The FDA clarified its policies regarding compounders as the national supply of GLP-1 drugs stabilizes, stating it will not take action against compounders like Hims & Hers for tirzepatide until March 19, 2025, under specific conditions [3]. - For semaglutide, the FDA allows compounders to continue selling their products until May 22, 2025, or until a court decision on a preliminary injunction motion [3]. Group 2: Financial Implications - Analysts predict that Hims & Hers will generate approximately $725 million in weight-loss revenue this year, primarily from semaglutide sales rather than tirzepatide [4]. - The FDA's decision is viewed as an incremental positive for Hims & Hers, providing a temporary reprieve for its semaglutide business [5].