Yahoo Finance

It's now time for some of today's trending tickers. You can scan the QR code below to track the best and worst performing stocks of the session with Yahoo Finance's trending ticker's page. First up, shares of Hims and Hers plunging after the company confirmed it will stop selling compounded versions of weight loss drugs and as analysts cite an uncertain year ahead. Yahoo Finance discussed the results with the company's CFO. Take a listen.

We do fully intend to abide by all regulatory requirements and when necessary to do so, we'll remove all commercially available dosages of semaglutide from the platform. Um so embedded in our guidance is after the first quarter, uh assuming in our guidance is no revenue from commercially available dosages of semaglutide.

And as we're taking a look at shares here this morning, we were continuing to track that slippage here for Hims and Hers. One of the other things that came up within the uh period, even though they did demonstrate some robust revenue growth, 69% year over year increase, it's still more about the outlook here that they're communicating to the analysts and the street here that's uh rattling or ruffling some feathers right now.

Yeah, it certainly is, especially when you compare that to the reaction that we're seeing in names like Novo Nordisk. You're looking at shares pop there on the heels of what we're hearing from Hims and Hers. You're looking at the highest level that we've seen since late December. You're also looking at Eli Lilly moving to the upside. Of course, much of that is because of the fact that Hims and Hers will no longer be selling some of those compound weight loss drugs, obviously after the fact that it's no longer declared a shortage. I I think the big question for Hims and Hers right now is just what exactly that growth trajectory looks like, right? Without the without the demand and without the revenue from the compounded drugs, just ultimately what that looks like, obviously a bit concerning here for investors. That's clearly reflected in the share price. But remember, this is a stock that has come so far, so fast, especially when you take a look at some of the short interest even involved in a name like Hims and Hers here most recently, and when you take a look at some of the gains over the last year, it's just been incredible to watch here. As I pull up the one-year chart, I believe, we're looking at gains here of just about 438%. Even since the start of the year, you're looking at gains of over 100%. So, again, obviously coming a bit back down to Earth, you look at this short interest within the stock, it makes a lot of sense why we're seeing the type of volatility that we are.

Yeah, one of the things that we continue to remind viewers of as well is what is widely regarded as this patent cliff. Between now and think out to, I think 2033, there are going to be a lot of brand name medications that have had intellectual property, had patent protections, that are going to be rolling off. And for Hims and Hers, what they've been able to do is identify which they would ultimately be able to produce, mass produce at scale and quickly get into their own sales ability and and take that to market as well, um, at a perhaps lower cost and take that to consumers. And so, with that patent cliff, that presents an opportunity. However, in this near term, um for the GLP1s that they had run Super Bowl ads about and tried to make sure that their brand stays top of mind for consumers, uh, it certainly is a longer lead time that it seems like it might take in order for them to be able to capitalize on some of those patent cliff roll offs here, uh, which which could account for about $400 billion in revenue lost by some drug companies here, um, as evaluated by one of the, I think Morgan Stanley put out the $400 billion figure there. Uh, so we could see some M&A, but we could also see Hims and Hers trying to make sure that they identify which solutions they can then take to market as well.