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Hims & Hers Stock Plummets. The Wegovy Shortage Is Over. - Barron's

1. Hims & Hers stock plunged over 23% after FDA resolved weight-loss drug shortages. The news directly threatens demand for its compounded GLP-1 shots. 2. FDA confirmed availability of Ozempic, Wegovy, and semaglutide. Demand for non-FDA-approved alternatives like Hims’ offering may drop. 3. Investors reacted sharply to the end of shortages for Lilly’s Zepbound as well. This regulatory update impacts Hims by eroding its competitive niche.

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FAQ

Why Very Bearish?

The FDA announcement ending weight-loss drug shortages undermines Hims’ unique product proposition, leading to an immediate sell-off. Historical instances show stocks with alternative product offerings suffer when primary competitors’ supplies stabilize.

How important is it?

The news directly alters the competitive landscape for Hims’ compounded drugs, causing an immediate, substantial stock price decline. It is highly impactful due to regulatory clarity reducing Hims’ unique sales catalyst.

Why Short Term?

The market reaction is immediate with significant price declines, though long-term recovery may depend on Hims’ strategic pivot. Past episodes with similar regulatory news resulted in short-term price pressure.

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