Hims & Hers Faces Stock Plunge After FDA Ends Semaglutide Shortage

The telehealth company will pivot to older weight-loss drugs and personalized treatments as it halts sales of compounded semaglutide.

Hims & Hers' stock dropped over 27% following the FDA's announcement that semaglutide is no longer in shortage, ending the company's ability to sell compounded versions of the drug.
The company plans to shift its focus to older GLP-1 drugs like liraglutide, as well as oral weight-loss medications and personalized treatments that comply with FDA regulations.
Weight-loss drugs, particularly compounded semaglutide, accounted for roughly 20% of Hims & Hers' 2024 revenue, which grew 69% year-over-year to $1.48 billion.
Despite strong revenue growth and exceeding Q4 earnings expectations, the company's gross margin fell to 77%, raising concerns about profitability and future growth without its compounded semaglutide offering.
Hims & Hers projects $2.3 billion to $2.4 billion in revenue for 2025, with $725 million expected from weight-loss products, though analysts have expressed skepticism about achieving these targets.