Hims & Hers Health Stock Is Trading Lower Wednesday: Here's Why

Hims & Hers Health Inc. (NYSE:HIMS) shares fell Wednesday following an FDA update listing Novo Nordisk’s (NYSE:NVO) diabetes drug Ozempic and weight-loss drug Wegovy as available, signaling possible supply stability. Here’s what you need to know.

What Happened: A report from the FDA on Wednesday shows that all doses of Novo Nordisk's Ozempic and Wegovy, both GLP-1 receptor agonists, are now available. The change comes after a prolonged shortage of these drugs, which drove demand for compounded versions.

Semaglutide, the active ingredient in both drugs, has been on the FDA's shortage list for over two years. During that time, compounding pharmacies — like those serving Hims & Hers — were legally allowed to create less expensive, compounded versions.

Hims & Hers stock had previously benefited from the demand for compounded GLP-1 injections and experienced a boost when the company entered this market.

The FDA's announcement suggests Novo Nordisk may soon meet demand, potentially removing Ozempic and Wegovy from the shortage list. Without a shortage, compounding pharmacies may lose the regulatory allowance to produce these alternatives. This may directly impact revenue for companies like Hims & Hers that rely on sales of compounded versions.

HIMS Price Action: Hims & Hers Health shares were down 14.31% at $19.04 at market close Wednesday, according to Benzinga Pro.

Read Next:

• Future-Proofing Cannabis Facilities: Grow America’s Approach To Shifting Regulations

Image Via Shutterstock.