Hims eyes growth in its weight loss business, despite end of semaglutide shortage
Hims & Hers Health, a telehealth company, is facing challenges in its weight loss business following the FDA's declaration that semaglutide, the active ingredient in popular weight loss drugs Ozempic and Wegovy, is no longer in short supply. Here are the key details:
FDA Declaration and Impact
The FDA announced on February 22, 2025, that semaglutide injections are no longer on its shortage list3. This decision has significant implications for companies like Hims & Hers that have been producing compounded versions of weight loss drugs:
- Compounding of semaglutide will eventually no longer be permitted under current regulations3.
- The FDA is giving compounding pharmacies 60-90 days to stop manufacturing, distributing, or dispensing compounded semaglutide products34.
Hims & Hers Response
Despite this setback, Hims & Hers is looking to maintain growth in its weight loss business:
- CEO Andrew Dudum stated the company will continue offering access to personalized treatments "as allowed by law"1.
- Hims is closely monitoring potential future shortages, as Novo Nordisk has indicated there may be continued periodic supply constraints3.
Financial Impact and Future Outlook
The FDA's decision has had a significant impact on Hims & Hers' stock and financial projections:
- The company's stock fell over 23% on February 22 and an additional 19% in after-hours trading on February 2514.
- For Q1 2025, Hims & Hers projects revenue of $520M-$540M7.
- Full-year 2025 revenue is anticipated to range from $2.3 billion to $2.4 billion, with weight-loss specialties contributing at least $725 million47.
Transition Strategy
Hims & Hers is adapting its strategy in response to the changing regulatory landscape:
- The company will begin notifying customers in the coming months that they will need to seek alternative options for weight loss medications4.
- Hims can still produce these drugs if there is another shortage or if there is a clinical necessity for personalization4.
While the end of the semaglutide shortage presents challenges for Hims & Hers' weight loss business, the company is actively seeking ways to maintain growth in this area and adapt to the evolving market conditions.
Sources:
1. https://www.investopedia.com/hims-and-hers-stock-drops-as-fda-says-ozempic-and-wegovy-no-longer-in-short-supply-11684124
3. https://www.fiercehealthcare.com/health-tech/fda-declares-semaglutide-shortage-over-spelling-end-compounded-glp-1-market
4. https://www.businessinsider.com/hims-tumbles-ceo-phasing-out-weight-loss-wegovy-ozempic-glp-2025-2
7. https://seekingalpha.com/news/4412904-hims-and-hers-projects-q1-2025-revenue-of-520m-540m-with-expanded-weight-loss-offerings