FDA Resolves Semaglutide Shortage, Impacts Hims & Hers Stock

Shares of Hims & Hers Health plummeted over 23% following the FDA's announcement that the shortage of semaglutide, the active ingredient in popular weight-loss drugs Wegovy and Ozempic, has been resolved. This resolution, effective immediately, eliminates the regulatory basis for Hims & Hers' compounded semaglutide offerings, which had been a key revenue driver for the company during the shortage. The FDA's decision is expected to disrupt Hims & Hers' business model, as compounded versions of the drug will no longer be legally permissible. Meanwhile, Novo Nordisk reported that they are shipping all doses of semaglutide regularly to wholesalers, affirming that they can meet current and future demand. Hims & Hers CEO indicated the company will continue to adapt by monitoring potential future shortages, while also announcing a strategic acquisition of a California peptide facility to enhance their personalized medicine supply chain. Despite this acquisition, investor sentiment has been negatively impacted, reflecting concerns over the company's future profitability in light of the FDA's resolution.