What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) jumped 12.5% in the afternoon session after the company revealed it will offer Eli Lilly's weight-loss medications (Zepbound) on its platform, marking a significant expansion beyond its previous focus on lower-cost alternatives to Novo Nordisk's Wegovy. This move positioned the company to tap into the growing demand for weight loss solutions and attract a broader customer base. The company added, "As we look ahead, we plan to continue to expand our weight loss offering to deliver an even more holistic, personalized experience."
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What The Market Is Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. But moves this big are rare even for Hims & Hers Health and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 8% on the news that the U.S. Food and Drug Administration raised concerns about unapproved GLP-1 drugs used for weight loss, including versions (compounded) prescribed by Hims & Hers. There had been growing market demand for weight loss drugs and they've evolved to be a significant driver of sales growth for manufacturers and distributors. The FDA's concerns could indicate tighter regulatory scrutiny, which restricts the ability of suppliers like Hims & Hers to get the affected versions to consumers.
Hims & Hers Health is up 24.4% since the beginning of the year, but at $31.31 per share, it is still trading 54.5% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $3,146.
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