Feb 25, 2025 - Economy
Charted: Hims takes second hit
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Hims & Hers shares took a second hit in the past three sessions today, this time after the company reported earnings yesterday afternoon.
- The company confirmed that the revenue windfall from compounded GLP-1 drugs was poised to dry up after the first quarter, but said it still expected least $725 million of revenue in 2025 from its remaining weight-loss offering.
- That left at least some analysts skeptical.
Catch up quick: The FDA declared an end to shortages of Novo Nordisk's Ozempic and Wegovy Friday, putting the brakes on the sale of commercially available dosages for compounded versions.
- Hims shares have now plunged 40% since that announcement. They had gained over 370% since offering GLP-1 compounds last May.
Meanwhile, GLP-1 maker Eli Lilly applied additional pressure today, announcing price cuts for weight-loss drug Zepbound.
- The move was viewed as a bid to draw momentum away from compounders.
The bottom line: The balance of power is shifting back to the name-brand drugmakers.
