Hims & Hers Health (NYSE: HIMS) has acquired a California-based peptide facility to strengthen its supply chain and expand its presence in the growing market for weight loss and hair loss treatments.
Peptide Facility Acquisition to Drive Innovation
Hims & Hers manufactures compounded versions of approved drugs, including those used for hair regrowth and weight management. Peptides play a crucial role in these formulations, and acquiring this facility positions the company for long-term innovation in:
- Preventive health
- Metabolic optimization
- Cognitive performance
- Recovery science
- Biological resistance enhancements
The company stated that this investment will enable it to advance peptide research while ensuring a stable and efficient supply chain for its expanding product portfolio.
FDA Declares End to Semaglutide Shortage, Impacting Hims & Hers
The announcement coincides with the U.S. FDA’s declaration that the shortage of semaglutide— the active ingredient in Novo Nordisk’s (NYSE: NVO) Wegovy and Ozempic— is over.
Since Hims & Hers produces a compounded version of semaglutide, the company can only legally manufacture and sell it during official shortages. With the FDA lifting this designation, Hims & Hers may face regulatory constraints on its compounded semaglutide offerings, which could impact revenue from its weight loss drug business.
HIMS Stock Plunges 20% on Market Reaction
Following the news, Hims & Hers shares dropped approximately 20% in early trading, reflecting investor concerns over the potential impact of the FDA’s decision on its weight loss drug segment.
As the company pivots towards peptide innovation and supply chain optimization, investors will be watching how Hims & Hers adapts to the evolving pharmaceutical landscape.
