In This Article:
Hims & Hers Health (HIMS) shares nosedive on news from the US Food and Drug Administration (FDA) that the shortage in semaglutide drugs, like Novo Nordisk's (NVO) Ozempic and Wegovy, has been resolved.
Yahoo Finance Senior Reporter Anjalee Khemlani joins Market Domination with Julie Hyman and Alexandra Canal to discuss what the changing weight loss drug supply dynamics mean for Hims & Hers investors.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Naomi Buchanan.
Him's and her's health that stock is tumbling today after the FDA announced the shortage of semaglutide injection product products such as Novo Nordisk, Ozempic and Wegovy has been resolved. So, Angelique, what can you tell us about this and what that means for a company like Him's and her's?
Him's and her's is definitely going to get hit with that. Now, they do have a little bit of leeway. What we do know is that the FDA confirmed what we had been anticipating, which is Novo Nordisk saying that their shortage is also over. Uh, that makes them join Eli Lily, which had already got its GLP1s. And remember, these are the blockbuster diabetes and weight loss drugs that are new and really popular. Uh, patients still say they're in shortage, but the the companies have been able to convince the FDA that they are not. And so right now what we're looking at is the impact on telehealth platforms like Him's taking a hit. They do have a 90-day window to continue selling these products, but others like Sesame Care and Ro, also who are also part of this, um are definitely going to get dinged. Sesame Care actually wrote a letter to their patients saying that just so you know, and manufacturers are allowed to still sell this for 90 days and the medication remains active for a year after being purchased. So it could, you know, so So they people could hoard them. People could hoard them. You can stock it up. So that's that's the that's really where things are right now. And what it means is that, uh, we're we're going to be watching how this impacts Lily and Novo's business over the coming year to have the compounders out of the marketplace, so those knockoffs that were allowed because their drugs were in shortage, what happens now with their selling with their throughput as well, because you know, manufacturing is a big key in that.
And to be clear, those platforms cannot sell the branded versions of the drugs.
They can sell the branded versions. It's just because they're in shortage, they're sort of a lower priority. Ro does have a partnership with Lily to sell direct, so that's one area where they could potentially see a higher throughput. But, um, the reason why they partnered with the compounders is because it's a cheaper option and easier to get access to. So that's that's why that has been on the market this whole time.
Interesting to continue to track that supply and demand picture there. Angelique, thank you so much.
Thank you.
